Blunt Company produces a part which has a unit product cost of $36 (computed below). The 8.000 pleces of this part which it produces are used in the manufacture of one of its products. $16 variable production cost Fixed production cost Unit product cost An outside distributor could supply Blunt Company at a cost of $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by 25%. The financial advantage (disadvantage) of purchasing the parts from the outside supplier would be: Multiple Choice O ($24.000) O ($56,000) O $56.000 O $24.000 Master Company makes four products in a single st. These products have the following unit productos Products Direct materials Direct labor Variable manufacturing Overhead Fixed manufacturing overhead Unit product cost $19.se $15.2e $2e.se $23.2e 12.20 3.70 10.5 7.40 $ 1.60 $ 2.10 $ 2. $ 2.10 10.se 11.90 3.2 19.78 44.5 37.90 42.12 43.40 Additional data concerning these products are sted below. Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 1.2ee7ee.see.se $59.30 $51.70 $59.5e $55.62 $ 3.60 $ 1.50 $ 2.20 $ 3.60 4,00 2,00 4,00 2.0 The grinding machines are potentialy the constraint in the production facility. A total of 9.000 minutes are available per month on these machines Direct laboris variable cost in this company Which product makes the least profitable use of the grinding machines! (Round your intermediate calculations to 2 decimal places.) 0 0 0 Prec 0 Which one of the following statements is correct(true)? Multiple Choice C ) When a company is cash rich, a project with a short payback period but a low rate of return may be preferred to a project with a long payback period and a high rate of return. 0 The required rate of return is the maximum rate of return that an Investment project must yield to the acceptable. O in preference decisions, the profitability Index and Internal rate of return methods may rank projects in a different order of preference. O The minimum required rate of return is the discount rate that makes the net present value of the project equal to zero. The management of Lefty Company is considering the purchase of one of two machines (Investment projects with related Information given in the table below. The companys cost of capital required rate of return is 10% Amount of Int of Investment $120,000 $150,000 NPV of the Investment $12.000 $13.500 Machine A Machine B Which one of the following statements is correct(true)? Multiple Choice C ) The project profitability Index for Machine B IS 111 the residual value used in the calculation of the NPV of Machine A was $5,000, but was then Increased to $7,000, the NPV of the Investment proposal would be less than $12.000 (with all other Information used in the calculation remaining the same C ) The Internal rate of return (IRR) on both Machine A and Machine B must be greater than 10% O the decision rule used in choosing between the two Investments is the project profitability Index the company would choose to purchase Machine B