Help Save&Exit Ovation Company has a single product called a Bit. The company normally produces and sells 48,000 Bits each year at a selling price of $40 per unit The company's unit costs at this level of activity are given below Direct materials $12.68 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 5.40 1.50 2.70 ($129,680 total) 4.50 3.00 ($144,eee total) Total cost per unit 29.70 A number of questions relating to the production and sale of Bits follow. Each question is in dependent Required 1. Assume that Ovation Company has sufficient capacity to produce 72,000 Bits each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 25% above the current 48,000 units each year if it were willing to increase the fixed selling expenses by $84.000 e. Calculate the incremental net operating income. 1 of 4Next > iconnethheducation.com/flow/connect.html e A ielts Chapter 12 Homework Help Save&Exit b. Would the increased fixed selling expenses be justified? Yes O No 10 2. Assume again that Onation Company has suficient capacty to produce 720o0ts ece stodie n f wegn ne wants to purchase 12,000 Bits. Import duties on the Bits would be $170 per unit, and costs for permits and Both import duties an $3.00 Round your answer to 2 decimal places.) licences would be $5,400. d permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are per unit shipping cost. Compute the per unit break -even price on this order. (Do not round your intermediate colculations. Print 3. The company has 1,000 Bits on hand that have some irregularities and are therefore considered to be "seconds."Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. what unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimel places. apter 12 Homework Oth 4. Due to a strike in its suppliers plant. Ovation Company is unable to purchase more material for the production of Bits. The strike is expected to last for two months. Ovation Company has enough material on hand to operate at 30% of normal levels for the period. As an alternative, Ovation could close its plant down entirely for the two months. If the plant were closed, fixerd Soke d costs would continue at 60% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% fat would be the impact on profits of closing the plant for the two-month period? (input the amount as a positive Ask Print 5. An outside manufacturer has offered to produce Bits and ship them Grecty to Ovation's costs would be Do not round Round your int