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Cullumber Company's unit manufacturing costs are: Variable costs $65 Fixed costs 35 A special order for 1300 units has been received from Somair, a company
Cullumber Company's unit manufacturing costs are: Variable costs $65 Fixed costs 35 A special order for 1300 units has been received from Somair, a company in Niger. Cullumber has available productive capacity to ll the order. The unit price requested by Somair is $100. Cullumber's normal unit selling price is $130. lfthe order is accepted, unit variable costs will increase by $2 for additional labeling and freight costs. If the special order is accepted, Cul lumber's incremental prot (loss) will be O $84500. O $42900. O $(39000). O $(2600). Save for Later Attempts: 0 of 1 used Concord Corporation incurs the following costs to produce 10500 units of a subcomponent: Direct materials $8200 Direct labor 12250 Variable overhead 12000 Fixed overhead 16000 An outside supplier has offered to sell Concord the subcomponent for $2.00 a unit. No fixed overhead costs are avoidable. If Concord accepts the offer, by how much will net income increase (decrease)? O $27450 O $11450 O $(4050) O $(550) Save for LaterCurrent Attempt in Progress Shefeld Corp. spent $11000 to produce Product 89, which can be sold as is for $14000, or processed further incurring additional costs of $3000 and then be sold for $16000. Which amounts are relevant to the decision about Product 89? O $11000, $3000, and $16000 O $14000, $3000, and $16000 O $11000, $14000, $3000 and $16000 O $11000, $14000, and $16000 Save for Later Attempts: 0 of 1 used A company is deciding whether or not to replace some old equipment with new equipment. Which of the following is not considered in the incremental analysis? 0 Book value of the old equipment. 0 Annual operating cost of the old equipment. 0 Net cost of the new equipment. 0 Annual operating cost of the new equipment. Save for Later Attempts: 0 of 1 used Marigold Corp. produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $620000 $140000 $65000 $825000 Variable expenses 390000 90000 58000 538000 Contribution margin 230000 50000 7000 287000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $155000 $ 15000 $(15000) $155000 Assume none of the xed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? 0 $90000 O $148000 0 $170000 0 $220000
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