I am needing help with the below attached questions. Please advise.

1.

Kilgore Company makes and sells a single product. Kilgore incurred the following costs in its most recent scal year: Cost Items Appearing on the Income Statement Materials cost ($7 per unit) Sales commissions (2% of sales) Company president's salary Salaries of administrative personnel Depreciation on manufacturing equipment Shipping and handling ($8.58 per unit) Customer billing costs (1% of sales) Depreciation on office furniture Rental cost of manufacturing facility Manufacturing supplies ($8.25 per unit) Advertising costs ($269,899 per year) Production supervisor's salary Labor cost ($8 per unit) Kilgore could purchase the products that it currently makes. If it purchased the items, the company would continue to sell them using its own logo, advertising program. and sales staff. Required Identify each cost as relevant or irrelevant to the outsourcing decision and indicate whether the cost is xed or variable relative to the number of products manufactured and sold. Cost items Relevance Behavior Materials cost ($7 per unit) Company president's salary Depreciation on manufacturing equipment Customer billing costs (1% of sales) Irrelevant Rental cost of manufacturing facility Relevant Advertising costs ($200,000 per year) Labor cost ($8 per unit) Sales commissions (2% of sales) Salaries of administrative personnel Fixed Shipping and handling ($0.50 per unit) Variable Depreciation on office furniture Manufacturing supplies ($0.25 per unit) Production supervisor's salaryNorman Dowd owns his own taxi, for which he bought a $11,200 permit to operate two years ago. Mr. Dowd earns $33,800 a year operating as an independent but has the opportunity to sell the taxi and permit for $42,500 and take a position as dispatcher for Carter Taxi Company The dispatcher position pays $33,500 a year for a 40-hour week. Driving his own taxi, Mr. Dowd works approximately 55 hours per week. If he sells his business, he wIII invest the $42,500 and can earn a 12 percent return. Required at. Determine the opportunity cost of Owning and operating the independent business. b. Calculate the earnings of Norman Dowd operating as an independent and the earnings of Norman Dowd working as a dispatcher. Based solely on financial considerations, should Mr' Dowd sell the taxi and accept the position as dispatcher? a. Opportunity cost b. Operating as an independent Working as a dispatcher Should Mr. Dowd sell the taxi and accept the position as dispatchei'? Benson Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside Benson's normal sales territory, asks Benson to pour 46 slabs for Lancing's new development of homes. Benson has the capacity to build 350 slabs and is presently working on 180 of them. Lancing is willing to pay only $2,560 per slab. Benson estimates the cost of a typical job to include unit-level materials, $860; unit-level labor, $470; and an allocated portion of facility-level overhead, $1,290. Required Calculate the contribution to profit from the special order. Should Benson accept or reject the special order to pour 46 slabs for $2,560 each? Contribution to profit Should Benson accept or reject the special order?Adams Company manufactures a personal computer designed for use in schools and markets it under its own label. Adams has the capacity to produce 41,000 units a year but is currently producing and selling only 18,000 units a year. The computer's normal selling price is $1,610 per unit with no volume discounts. The unitlevel costs of the computer's production are $510 for direct materials, $190 for direct labor. and $150 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Adams during the year are expected to be $2,110.000 and $814,000. respectively. AsSume that Adams receives a special order to produce and sell 3,090 computers at $1,250 each. Required Calculate the contribution to profit from the special order. Should Adams accept or reject the special order? Contribution to prot . Should Adams accept or reject the special order? Walton Bicycle Manufacturing Company currently produces the handlebars used In manufacturing its bicycles, which are high-quality racing bikes with limited sales. Walton produces and sells only 6,100 bikes each year. Due to the low volume of activity, Walton is unable to obtain the economies of scale that larger producers achieve. For example, Walton could buy the handlebars for $35 each; they cost $38 each to make. The following is a detailed breakdown of current production costs. Item Unit Cost Total Unitlevel costs Materials 5 14 5 35,469 Labor- 19 51,868 Overhead 2 12, 268 Allocated facility-level costs 12 73,289 Total $ 38 $ 231,889 After seeing these gures, Walton's president remarked that it would be foolish for the company to continue to produce the handlebars at $38 each when it can buy them for $35 each. Required Calculate the total relevant cost. Do you agree with the president's conclusion? Total relevant cost Do you agree with the president's conclusion? Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials $ 6,100 Unit-level labor 6, 200 Unit-level overhead 3, 300 Product-level costs* 7,500 Allocated facility-level costs 27,300 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Perez for $2.90 each. Required a. Calculate the total relevant cost. Should Perez continue to make the containers? b. Perez could lease the space it currently uses in the manufacturing process. If leasing would produce $12,100 per month, calculate the total avoidable costs. Should Perez continue to make the containers? a. Total relevant cost a. Should Perez continue to make the containers? b. Total avoidable cost b. Should Perez continue to make the containers