Beto Company pays $3.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $2.70 per unit for direct materials and $1.00 per unit for direct labor. The company normally applies overhead at the predetermined rate of 200% of direct labor cost. Incremental overhead to make the part would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter your answers rounded to 2 decimal places.) (b) Should Beto make or buy the part? Cobe Company has manufactured 285 partially finished cabinets at a cost of $71,250. These can be sold as is for $85,500. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $17,100, and the finished cabinets could be sold for $114,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? A company must decide between scrapping or reworking units that do not pass inspection. The company has 13,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $44,200 or reworked for $58,500 and then sold for $119,600. (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? Varto Company has 11,000 units of its product in inventory that it produced last year at a cost of $157,000. This year's model is better than last year's, and the 11,000 units cannot be sold at last year's normal selling price of $36 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $121,000 or (2) they can be processed further at an additional cost of $270,100 and then sold for $385,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Varto sell the products as is or process further and then sell them? Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4.8 pounds of the material, Ike uses 3.9 pounds of the material, and Bix uses 6.6 pounds of the material. Selling price pe unit and variable costs per unit of each product follow. (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $345,000 of its fixed costs are avoidable. (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from eliminating this segment