Burns Industries currently manufactures and sells 21,000 power saws per month, although it has the capacity to produce 36,000 units per month. At the 21,000-unit-per-month level of production, the per-unit cost is $67, consisting of $41 in variable costs and $26 in fixed costs. Burns sells its saws to retail stores for $81 each. Allen Distributors has offered to purchase 5,100 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least: Multiple Choice $67. $81. $26. $41. Burns Industries currently manufactures and sells 11,000 power saws per month, although it has the capacity to produce 26,000 units per month. At the 11,000-unit-per-month level of production, the per-unit cost is $46, consisting of $30 in variable costs and $16 in fixed costs. Burns sells its saws to retail stores for $71 each. Allen Distributors has offered to purchase 4,100 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs. Burns decides to accept the special order for 4,100 units from Allen at a unit sales price that will add $86,100 per month to its operating income. The unit price Burns is charging Allen is: Multiple Choice $71. $51. $46. $30. Aircraft Products, a manufacturer of aircraft landing gear, makes 2,200 units each year of a special valve used in assembling one of its products. The unit cost of producing this valve includes variable costs of $68 and fixed costs of $60. The valves could be purchased from an outside supplier at $75 each. If the valve were purchased from the outside supplier, 40% of the total fixed costs incurred in producing this valve could be eliminated. Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Multiple Choice Increase by $37,400. Increase by $63,800. Decrease by $37,400. Decrease by $63,800. Sherman has budgeted sales for the upcoming quarter as follows: Units April 1,200 May 1,500 June 1,350 The desired ending finished goods inventory for each month is one-half of next month's budgeted sales. Three pounds of direct material are required for each unit produced. If direct material costs $5 per pound, and must be paid for in the month of purchase, the budgeted direct materials purchases (in dollars) for April are: Multiple Choice $13,500. $20,250. $6,750. $21,375.