I have attached the assignment for Situation 2, and I have attached my work.

I am unsure that I answered B. correctly on the attached spreadsheet; therefore, I am not certain of questions D & E.Please help.

BSuppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost ofeachunit delivered to the overseas customer?

D.What are the advantage(s) to Acme Corp. of foregoing manufacture of the product for sales by Acme and instead manufacturing for sales by other companies?

E.e) What are the dangers of the strategy mentioned in Question D?

Acme Corp. Units 47,500.00 Per Unit Make Cost of Purchasing Direct Material Direct Labor Variable Manufactuign overhead Fixed manufacturing overhead Unit product cost $ $ $ $ $ Buy $ 59.00 16.00 18.50 5.50 23.00 $ 63.00 $ 14.95 73.95 $10.95 Difference in favor of continuing to make the parts Make Buy $ 3,512,625.00 Cost of purchasing Cost of making Opportunity cost-segment forgone on a potential new product line $ total cost $ 3,267,500.00 $ 3,512,625.00 difference in favor of purchasing from the outside supplier $ 2,992,500.00 275,000.00 $245,125.00 A. Relevance unit product cost is $ 48.05 Add the cost of direct material, direct labor, variable manufacturing overhead, and the difference in the fied m Fixed cost of $23.00 is irrelevant as it will be incurred whether the product is manufactured or purchased B. The net total dollar disadvantage of purchasing the part is $ 245,125.00 C. Acme Corp. should continue to manufacture the part D. The effect of fixed costs on manufacturing the part has not contributed much because the majority of fixed co E. If the fixed costs on manufacturing the part were avoidable, than the net adavantage of the purchase is: Net Disadvantage $ 245,125.00 Avoidable fixed cost $ 710,125.00 Net Advantage $ 465,000.00 F. The maximum amount Acme Corp. should be willing to pay an ouside supplier per unit is: Avoidable Gross Cost $ 2,282,375.00 Additional Contribution $ 275,000.00 $ 2,557,375.00 Per Unit $ 53.84 Additional Contribution $ $ $ $ $ $ 275,000.00 $ 48.05 47,500.00 2,282,375.00 275,000.00 2,557,375.00 47,500.00 53.84 47,500 units Make Buy $ 2,802,500.00 760,000.00 878,750.00 261,250.00 1,092,500.00 $ 710,125.00 2,992,500.00 $ 3,512,625.00 $520,125.00 $ $ $ $ ead, and the difference in the fied manufactuing overhead of make and buy. is manufactured or purchased uch because the majority of fixed cost is inevitable davantage of the purchase is: lier per unit is: Selling Price Per Unit Per Unit Per 45,000 Units $ 126.00 $ 5,670,000.00 Direct Material Direct Labor Variable Manufactuing Overhead Fixed Manufacturing Overhead Variable Selling and Administraive Expense Fixed Selling and Administrative Expense Total Cost $ $ $ $ $ $ $ Net Operating Income $ Total Variable Cost Contibution Margin $ $ $ $ 54.00 12.50 3.50 17.00 5.00 13.00 105.00 $ 2,430,000.00 $ 562,500.00 $ 157,500.00 $ 765,000.00 $ 225,000.00 $ 585,000.00 $ 4,725,000.00 21.00 $ 945,000.00 75.00 51.00 27.00 24.00 7,000.00 $ 504,000.00 $ 357,000.00 $ 861,000.00 7,000.00 $ 123.00 A. There would be an increase in the company's net operating income for the month by special overseas orders B. The opportunity cost of each unit delevered to the overseas customer is $ 24.00 C. The minimum acceptable price per unit for the special order is $ 123.00 D. The special order would be acceptable because it would add value to the net operating income even though t is lower than the regualr price. E. The dangers of this strategy as mentioned in Problem D. are minimal Overseas Order Per Unit Overseas Order 7000 units $ 99.00 $ 693,000.00 $ $ $ $ $ $ $ -$ by special overseas orders by 54.00 12.50 3.50 17.00 2.00 13.00 102.00 $ $ $ $ $ $ $ 378,000.00 87,500.00 24,500.00 119,000.00 14,000.00 91,000.00 714,000.00 3.00 -$ 21,000.00 $ 504,000.00 $ 189,000.00 ating income even though the special order price $ 189,000.00 $ 924,000.00 $ 27.00 Selling Price Per Unit Total Variable Cost Per Unit Contribution Margin Per Unit Contribution Margin Ratio Product Alpha Product Beta $ 100.00 $ 91.50 $ 51.50 $ 49.50 $ 48.50 $ 42.00 49% 46% Mixing minutes required to produce one unit 5 3 Contirbution Margin per unit of the restrained resource (per minute) $ 9.70 $ 14.00 Monthly Demand in Units Mixing Time required to produce one unit total mixing time required 1750 2.5 4375 3500 4 14000 Contribution Margin per unit of the constrained resource (in minutes) $ 9.70 $ 60 14.00 60 Contribution Margin per unit of the contstrained resource (in hours) $ 582.00 $ 840.00 Monthy Demand for Product Alpha Mixing time required for one Product Alpah Total mixing time required to produce Product Alpha Remaining mixing time available 1750 units 2.5 minutes 4375 minutes 25625 minutes Monthly demand for Product Beta mixing time required for one Product Beta total mixing tiime required to product Product Beta remaining mixing time available 3500 units 4 minutes 14000 minutes 11625 minutes Mixing time required for one Product Chi production of Product Chi 5 minutes 2325 units A. It would required 33,375 minutes of mixing machine time to satisfy demand for all three products B. To maximize net operating income, we should consider the amount of the constrained resource each product We should produce 1750 units of product Alpha, 3500 Units of product Beta, and 2325 units of product Chi. Si the most profitable use of the mixer, we give that unit priority to make it's monthly demand. Then Project Beta. profitbale use of the mixer; therefore it is given last priority. Since there are only 30,000 minutes available per m needed, we must cut the least profitbale. C. The company should be willing to pay $351.00 for one additional hour of mixing. If the company has already existing mixing machine capacity, the target for both x and y have already been met; therefore, remaining time sh C. The company should be willing to pay $351.00 for one additional hour of mixing. If the company has already existing mixing machine capacity, the target for both x and y have already been met; therefore, remaining time sh Product Chi $ 96.00 $ 49.75 $ 46.25 48% 4 $ 11.56 Total 3000 5 15000 $ 11.56 60 $ 693.75 33375 all three products ained resource each product requires, in this case mixing. 2325 units of product Chi. Since producing project Alpha is demand. Then Project Beta. Project Chi is the least 0,000 minutes available per month, and 33,375 minutes are . If the company has already made the best use of of the ; therefore, remaining time should be dedicated to making z. Acc 600 Assignment 2 Submit Assignment Due Tuesday by 11:59pm Points 50 Submitting a text entry box or a file upload Presented below are three independent situations that you as a manager trainee employed by Acme Corp. have been asked to evaluate. Evaluate each situation based on the requirements for each. How you respond will determine your likelihood of promotion. (Hint: Because you are a quick study, you have not forgotten what you learned from Assignment 1 about variable costs in relationship to contribution margin.) Situation Two Acme Corp. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 45,000 units per month is as follows: Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expense Fixed selling and administrative expense Total $54.00 12.50 3.50 17.00 5.00 13.00 $105.00 The normal selling price of the product is $126.00 per unit. An order has been received from an overseas customer for 7,000 units to be delivered this month at a special discounted price. This order would have no effect on the company's normal sales and would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $3.00 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Required: a. Suppose there is ample idle capacity to produce the units required by the overseas customer and the special discounted price on the special order is $99.00 per unit. By how much would this special order increase (decrease) the company's net operating income for the month? 1. Suppose the company is already operating at capacity when the special order is received from the overseas customer. What would be the opportunity cost of each unit delivered to the overseas customer? 2. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 7,000 units for regular customers. What would be the minimum acceptable price per unit for the special order? 1. What are the advantage(s) to Acme Corp. of foregoing manufacture of the product for sales by Acme and instead manufacturing for sales by other companies? 1. e) What are the dangers of the strategy mentioned in Question D