Haver Company currently pays an outside supplier $39 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1for making the part would require direct materials of $1? per unit, direct labor of$20 per unit, and incremental overhead of$3 per unit. Method 2 for making the part would require direct materials of $1? per unit, direct labor of $14 per unit, and incremental overhead of 35? per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? lfHaver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost per unit for each alternative method of making the part. Cost per unit Required 2 ) Edge Company produces two models of its product with the same machine. The machine has a capacity of164 hours per month. The following information is available. Standard Deluxe Selling price per unit $ 198 $ 229 Variable costs per unit 38 132 (ontrihution margin per unit $ 113 $ 35 Machine hours per unit 1 hour 2 hours Maximum unit sales per month 558 units 286 units Required: i. DetenTIine the contribution margin per machine hour for each model. Contribution margin per unit Contribution margin per machine hour 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most protable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is El] units (not 550 units). How many units ofeach model should the company produce? How much total contribution margin does this mix produce per month? Hours dedicated to the production of each product Units produced for most protable sales mix Contribution margin per unit Total contribution margin JART manufactures and sells underwater markers. Its contribution margin income statement follows. Contribution Margin Income Statement For Year Ended December 31 Per Unit Annual Total Sales (456,699 units) 5 6.66 :5 2390399 Variable costs Direct materials 1.49 6?6,599 Direct labor 9.31 139,599 Variable overhead 9.66 2?6,699 Contribution margin 3.66 1,626,699 Fixed costs Fixed overhead 9.36 135,699 Fixed general and administrative 9-25 1125599 Imme w A potential customer offers to bug,r 55,000 units for $3.00 each. These sales would not affect the company's sales through its normal channels. Details about the special offer follow. Direct materials cost per unit and variable overhead cost per unit would not change. Direct labor cost per unit would be $0.49 because the offer would require overtime pay. Accepting the offer would require incremental fixed general and administrative costs of $5,500. Accepting the offer would require no incremental fixed overhead costs. Required: 1. Compute income from the special offer. 2. Should the company accept or reject the special offer? Varto Company has 11,600 units of its product in inventory that it produced last year at a cost of $156,000. This year's model is better than last year's, and the 11,600 units cannot be sold at last year's normal selling price of $38 each. Varto has two alternatives for these units: (1} They can be sold as is to a wholesaler for $150,800 or {2) they can be processed further at an additional cost of $215,800 and then sold for $359,600. to} Prepare a sell as is or process further analysis ofincome effects. lb} Should Varto sell the products as is or process further and then sell them? Revenue $ 139,200 55 1,343,000 Costs 21am Income $ 139,200 55 1,131,300 Incremental income [loss] to sell as is $ ?,900 [b] The company should: Edit Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine's capacity is 2,000 hours per year. Colt can sell up to 740 units of Hero and 820 units of Flip per year. Selling prices and variable costs follow. Hem Flip Selling price per unit $ 156 $ 95 Variable costs per unit 5-8 55 (a) Compute the contribution margin per machine hour for each product. Contribution margin per machine hour (b) Determine the best sales mix of products. Units produced and sold for most protable sales mix Hours required to produce most protable sales rnix (c) Compute the total contribution margin for the best sales mix. Units produced for most protable sales mix Contribution margin per unit Total co ntri bution m a rgin Marin Company makes several products, including canoes. The company reports a loss from its canoe Segment (see below}. All its variable costs are avoidable, and $347,500 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,166,266 Variable costs $33,669 Contribution margin 333,269 Fixed costs 397:669 Income (loss) $ {53,866} [a]: Compute the income increase or decrease from eliminating this segment. {b} Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Income (loss) Required B ) Farrow Company reports the following annual results. Contribution Margin Income Statement Per Unit Annual Total Sales (269,099 units) $ 15.08 $ 3,980,696 Variable costs Direct materials 2.66 526,696 Direct labor 4.66 1,946,696 Overhead 2.56 656,696 Contribution margin 6.56 1,696,696 Fixed costs Fixed overhead 2.66 526,696 Fixed general and administrative 1-59 39@s@99 Income $ 3.08 $ 380,099 The company receives a special oerfor 26,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of$104,000 and incremental fixed general and administrative costs of $112,000. to} Compute the income or loss for the special offer. [b] Should the company accept or reject the special offer