Differential Analysis and Situations - can I get assistance with this today?

DIFFERENTIAL ANALYSIS SCENARIOS (20 PTS) Underline/Highlight the correct letter for each of the four scenarios. Include your work. Drop or Retain Hair Today Company produces 5,000 bottles of avocado-pomegranate conditioner each year. The selling price for the conditioner is $8 per bottle. Variable costs to produce the conditioner are $3 per bottle. Fixed manufacturing overhead for the company is $27,000 and 2/3 of the overhead is directly traceable to the conditioner line. The other third of the overhead would remain regardless of whether the conditioner is manufactured. If Hair Today discontinues the avocado-pomegranate conditioner, the company's operating income would ____? a. b. c. d. decrease by $25,000 decrease by $7000 increase by $7000 increase by $43,000 Show work: Special Order Winter World makes and sells waterproof mittens. Each pair sells for $42. Product costs are as follows, based on full capacity: Direct Materials.......................$8 Direct labor............................$9 Manufacturing overhead.............10 (70% variable, 30% fixed and unavoidable) A special order for mittens has been received by Winter World for 10,000 mittens. The special order could be completed at the same variable costs, except that shipping would be an additional $4 per pair of mittens. The fixed manufacturing overhead remains unchanged with or without the special order. Winter World is selling 200,000 pairs of mittens now and the special order would not cause operations to hit capacity. If Winter World accepts this special order, it should request a price greater than _____ a. b. c. d. $24 $27 $28 $31 Show work Make or Buy Jupiter Juicer manufactures juicers. One of the parts used in the juicer costs $18 to manufacture internally. The costs are as follows: Direct materials............................$8 Direct labor..................................4 Variable manufacturing overhead.......1 Fixed manufacturing overhead...........5 Unit Product Cost.....................$18 An outside supplier has offered to provide 11,000 of the parts for only $14 each. Java Juicer estimates that 60% of the fixed overhead cost for the espresso maker could be eliminated if the parts were bought from an outside supplier. The plant has adequate capacity to manufacture 11,000 parts and juicers. What is the advantage or disadvantage of purchasing the parts from an outside supplier? a. b. c. d. $4/unit disadvantage to purchase the parts from an outside supplier. $1/unit disadvantage to purchase the parts from an outside supplier. $1/unit advantage to purchase the parts from an outside supplier. $2/unit advantage to purchase the parts from an outside supplier. Show work: Sell or Process Further The Light Up My Life Company has 5,000 desk lamps in inventory that are obsolete. The total cost to produce these lamps was $50,000. If the lamps are reworked, the cost would be $20,000 and they could then be sold for $35,000. Without rework, the lamps can be sold as-is for $8,000 for scrap. What are the sunk costs and what is the incremental profit or loss from reworking the lamps vs. the status quo? a. b. c. c. Sunk cost = $50,000 and incremental loss = $7,000 Sunk cost = $50,000 and incremental profit is $7,000 Sunk cost = $70,000 and incremental profit is $27,000 Sunk cost = $50,000 and incremental profit is $15,000 Show work: Non-numericalSpelling and grammar will be graded. What did you learn about Make or Buy from \"Boeing 787's problems blamed on outsourcing, lack of oversight? How can these internal managerial decisions have far reaching consequences? What win-win scenarios and what pitfalls were mentioned in \"Harvard Business School's Transforming Manufacturing Waste into Profit\"? Which beef by-products do you speculate may move to joint products? Explain. \"Inforum. Moo-ve over steak: Beef byproduct values at record highs.\" What are some non-numerical factors that should be considered in differential analyses