For Chapter 10 (Relevant Costing - Sales Mix) Questions: Sales Price/unit Direct Material/unit Direct labor/unit Variable OH/unit Product Product R 22.00 20.00 7.50 6.70 4.20 5.30 4.30 4.00 MH/unit 2.00 1.00 For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs DM DL OH selling expense admin expense total expense unit 7.70 6.30 10.00 6.00 2.60 32.60 Q 30,000 231,000 189,000 300,000 180,000 78,000 978,000 Assume OH is 75% variable and 25% foxed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed For Chapter 11 (Capital Budgeting) Questions: Assume initial investment is $100,000 for all three projects: Project Y Project X Year Cash Flows 1 30,000 2 30,000 3 40,000 4 10,000 5 10,000 Cash Flows 30,000 30,000 20,000 20,000 20,000 Project 2 Cash Flows 10,000 20,000 20,000 30.000 40,000 Also assume that cost of capital is 60% for all three projects