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its products. The 4. Your pany produces a part used in the manufacture of one o product cost is $18, computed as tollows: s 8 Direct labor Variable manufacturing o Fixed manufacturing overhead5 Unit product cost $18 An outside supplier has offered to provide the annual requirement of 4,000 of the parts for only $14 each. It is estimated that 60 percent of the fixed overhead cost above could be eliminated if the parts are purchased from the outside supplier. Based on these data, the per-unit dollar advantage or disadvantage of purchasing from the outside supplier would be: A. SI disadvantage S1 advantage $2 advantage $4 disadvantage 5. Your Company has the capacity to manufacture and sell 20,000 units each year but is currently only manufacturing and selling 15,000. The following costs relate to annual operations at 15,000 units: Total Cost S150,000 Fixed manufacturing cos.S120,000 Variable selling and administrative cost.... $90,000 Fixed selling and administrative cost.$180,000 Variable manufacturing cost Your Company normally sells its product for $42 per unit. A discount chain is interesting in purchasing Your Company's excess capacity of 5,000 units. This special order would not affect regular sales or the cost structure above. What is the minimum selling price that your company should accept for the special order? A. $12.00 B. $13.50 C. $16.00 D) $31.00 O co 6. Your Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and potatoes. The peels can then be processed further to make a cocktail of organic nutrients. The potatoes can be processed further to make frozen fries. A batch of potatoes costs $63 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $29 or processed further for $15 to make organic com post that can be sold for $41. The potatoes can be sold as is for $40 or processed further for $22 to make frozen fries that are sold for $77. How much more (less) money does the company make from processing one batch of potatoes into the organic compost and frozen fries? A. (S 3) B. $15 C. $12 D. $6