ddle Company is considering eliminating Product Red T. Last year, the product line generated revenues of $300,000 and incurred variable costs of $200,000. Traceable fixed costs for the line inciu supervisory salaries of $75,000 and depreciation of $50,000. In addition, common (allocated costs) of 0,000 are also charged to Product Red T. If Product Red T is dropped, none of the equipment could be sold. What wo $4 15, oub e S 2. Dog Company incurs the following costs in the production of K9, which is normally sold for $25 per unit $4 Direct materials $5 Direct labor Variable overhead 2 Fixed overhead Variable Selling & Administrative 1 Fixed Selling& Administrative 3 A foreign company would like to buy 4,000 units but is only willing to pay $18 per unit. Since the company would pay for shipping, no variable selling and administrative expenses would be incurred on the special order. Thomas has a capacity of 24,000 units and is expecting to produce 20,000 units in 2010. Highland, Inc. incurs the following costs in the annual production of 10,000 units of a component part Direct materials $3 Direct labor Variable overhead 2 Fixed overhead5 Scotties Company has offered to supply the part to Highland for $14. Even if Highland buys the part, $3 of fixed overhead would continue. The unused space now being used to manufacture the part could be rented out for $25,000 yearly. Should Highland make or buy the component? What is the net