Ferguson Company manufactures 5,000 parts per year; the parts are used in the assembly of one of the company's products. The unit product cost of these parts is: Variable manufacturing cost $33.00 21.00 Fixed manufacturing cost Unit product cost $54.00 The part can be purchased from an outside supplier at $41.00 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: Multiple Choice $5,000 decrease. $30,000 decrease. O $30,000 increase. The part can be purchased from an outside supplier at $41.00 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: Multiple Choice $5,000 decrease. $30.000 decrease. O $30,000 Increase. $5,000 increase. The unit product cost of this part is: Variable manufacturing cost Fixed manufacturing cost Unit product cost $9.50 3.00 12.50 The part can be purchased from an outside supplier for $9.00 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The effect on net operating income as a result of purchasing the part would be a: Multiple Choice $3,500 increase $500 decrease. $2,500 increase. $4,500 decrease Stewart Corporation manufactures solar powered calculators. The company can manufacture 1,230,000 calculators a year at a variable cost of $3,259,500 and a fixed cost of $2,029,500. Based on management's projections for next year, 963,000 calculators will be sold at the regular price of $21.50 each. A special order has been received for 243,000 calculators to be sold at a 70% discount off the regular price. Total fixed costs would be unaffected by this order. The company's net operating income will be increased as a result of the special order by: (Do not round your intermediate calculations.) Multiple Choice $522,450 O $923,400 O O $643,950 $1,567,350 O Marion Company sells its product for $118 per unit. The company's unit product cost based on the full capacity of 220,000 units is as follows: Direct materials $25.80 31.80 Direct labor 33.60 Manufacturing overhead 91.20 Unit product cost $ A special order offering to buy 112,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be $19.80 per unit for shipping. The company has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is fixed and would not be affected by this order. In negotiating a price for the special order, the minimum acceptable selling price per unit should be: (Round your answer to two decimal places.) A special order offering to buy 112,000 units has been received from a foreign distributor. The only selling costs that would be incurred on this order would be $19.80 per unit for shipping. The company has sufficient idle capacity to manufacture the additional units. Two-thirds of the manufacturing overhead is fixed and would not be affected by this order. In negotiating a price for the special order, the minimum acceptable selling price per unit should be: (Round your answer to two decimal places.) Multiple Choice $99.80 O O $88.60 $91.20. O O $98.20, Product A has a contribution margin of $8 per unit, a contribution margin ratio of 50%, and requires 4 machine-hours to produce one unit. Product B has a contribution margin of $12 per unit, a contribution margin ratio of 40%, and requires 5 machine-hours to produce. If the constraint is machine-hours, then the company should emphasize: Multiple Choice product A product B both products equally. O neither product O Consider the following production and cost data for the two versions of the product that is manufactured and sold by Bellows Corporation: Basic $ 264.00 Deluxe $ 288.00 Contribution margin per unit Machine set-ups required per unit 24 set-ups 32 set-ups Only 190,200 machine set-ups can be performed each year due to limited supply of skilled labor. There is unlimited demand for each product. The largest possible total contribution margin that can be realized each year is: Multiple Choice $3,804,000. $1,711,800 O $2,282,400 $2,092,200 When a manager increases the capacity of the bottleneck, it is called: Multiple Choice increasing the constraint. constraining the constraint. improving the constraint. relaxing the constraint