File Edit View Insert Format Tools Data Window Help AutoSave OFF Aby 5 = Ch 12 Homewe AutoSave OFF Final Exam Home Insert Draw Page Layout Formulas Data Review View Developer Arial 10 E ab General Paste BIU E E J V $ ~ % " Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? A1 4 x v fx| A B C D E F G YOU MUST SHOW AND LABEL ALL CALCULATIONS FOR EACH QUESTION!!! Q1: MEC Corporation is running below its operating capacity and charges $30 per unit. To use some of the excess capacity and generate additional sales, they are looking at 2 special offers from customers. Customer A is offering to purchase purchase 1000 units at $27 each. Customer B is offering to purchase 1000 units at $28 each. Variable costs are $15 per unit and no additional fixed costs would be added with either order. Which special offer, if any, should be accepted (we cannot do both orders) and why? Option A Option B 8 9 10 1 Decision: 12 13 14 15 16 Q2: The shoe department of a company has revenues of $840,000; variable expenses of $250,000; direct fixed costs of $380,000; and To allocated, indirect fixed costs of $290,000 in an average year. If the company eliminates this department, what would be the effect on net income? Should we eliminate the department? Explain. 19 20 21 22 23 + 24 25 26 27 28 29 30 31 Decision: 32 33 34 35 Exam Settings + iJ 19,743 DEC 32 16 SFile Edit View Insert Format Tools Data Window Help AutoSave OFF 6 5 0 = Ch 12 Homework AutoSave OFF Final Exam me Insert Draw Page Layout Formulas Data Review View Developer Arial 10 A ab General aste $ ~ % " Recover Unsaved Workbooks. We were able to save changes to one or more files. Do you want to recover them? + XV fox A B C D E F G Q3: Rainy Day Company manufactures two joint products. At the split-off point, they have sales values of $31 for Product 1 and $25 for Product 2. After further processing, the company can sell Product 1 for $44 and Product 2 for $33. Product 1 costs $8 per unit to process further and Product 2 costs $26 to process further. Should further processing be done on either or both of these products? Product 1 Product 2 Sell as is process further Sell as is process further Decision: Q4: PMI Today is looking to invest in a new office copier costing $5000 with an estimated useful life of 5 years and salvage value of $1,000. The copier is expected to have annual cash inflows of $8750, cash outflows of $6250 and a 30% income tax rate. Calculate the expected after-tax annual net income and after-tax annual net cash flow (round all numbers to nearest dollar). Net Income Net Cash Flow 35 56 Exam Settings 9,743 DEC 32 16