i Question 9 of 13 0 / 7.7 E on Sunland Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches\" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Sunland believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has xed costs of $13,425,900. Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? i Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places as. 0.22 and round nal answers to 0 decimal places. eg. 2,510.) Total break-even sales $ Sale of mail pouches and small boxes $ 4027770 Sale of non-standard boxes $ 805554 (b) The company's management would like to hold its xed costs constant but shift its sales mix so that 60% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be the company's break-even sales, and what amount of sales would be provided by each service type? (Use WeightEd-Average Contribution Margin Ratio rounded to 2 decimal places 2.3. 0.22 and round nal answers to 0 decimal places, as. 2,510.) Total break-even sales $ 33564750 Sale of mail pouches and small boxes $ 20138850 Sale of non-standardized boxes $ 13425900 At Blossom Electronics, it costs $28 per unit ($15 variable and $13 xed) to make an MP3 player that normally sells for $40. A foreign wholesaler offers to buy 3,000 units at $24 each. Blossom Electronics will incur special shipping costs of $1 per unit. Assuming that Blossom Electronics has excess operating capacity, indicate the net income (loss) Blossom Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) Reject Accept Net Income Order Order increase (Decrease) Revenues $ $ $ CostsVariable manufacturing Shipping Net income $ $ $ The special order should be v . Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 15,100 golf discs is: Materials $ 7,852 Labor 21,744 Variable overhead 14,496 Fixed overhead 30,502 Total $74,594 Crane also incurs 6% sales commission ($0.42) on each disc sold. McGee Corporation offers Crane $5.00 per disc for 4,600 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Crane. If Crane accepts the offer, it will incur a one-time fixed cost of $4,840 due to the rental of an imprinting machine. No sales commission will result from the special order. Assume there is sufficient capacity to accommodate the special order. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject Accept Increase Order Order (Decrease) Revenues to $ Materials Labor Variable overhead Cost of equipment rental Net income $ $ (b) Should Crane accept the special order? Crane should the special order .Blossom Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (323,400 units) $4,380,000 Cost of goods sold 2,597,980 Gross profit 1,782,020 Operating expenses 840,840 Net income $941,180 Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed. In September, Blossom receives a special order for 20,500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45).) Net Income Reject Accept Increase Order Order (Decrease) Revenues $ $ Cost of goods sold Operating expenses Net income $ $ $ (b) Should Blossom accept the special order? Blossom Company V the special order.Sunla nd Fiber Company is the creator of YGo. a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. YGo has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,099,000 YGo undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total Direct materials $2.10 $2,30?.900 Direct labor 0.42 461,580 Variable manufacturing overhead 0.98 1,0??.020 Fixed manufacturing overhead 1.40 1,538,600 Variable selling expenses 0.3? 406,630 Totals $5.2? $5,?91.?30 The US. Army has approached Sunland Fiber and expressed an interest in purchasing 250,200 YGo undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.00 per undergarment to cover all other costs and provide a prot. Presently. Sunland Fiber is operating at 20% capacity and does not have any other potential buyers for YGo. If Sunland Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order. Prepare an incremental analysis for the Sunland Fiber. {Enter negative amounts using either a negative Sign preceding the number eg. ~45 or parentheses eg. (45].) Net lnco me Reject Accept Increase Order Order (Decrease) Reven ues $ $ $ Variable costs: Direct materials Direct labor Variable overhead Total variable costs Net income if: $ $ Should Sunland Fiber accept the Army's offer? Su nland Fiber should V the Army's offer. Sheridan Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 16,400 of the assembly part at $6 per unit. If the offer is accepted, Sheridan will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, that Sheridan will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Variable manufacturing costs $ $ $ Fixed manufacturing costs Purchase price Total annual cost $ $ $ The decision should be to V the part.Crane Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 56% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 31,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.30 per unit. If Crane Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $47,500 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Make Buy Increase (Decrease) Direct materials $ $ Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ (b) Should Crane Ranch buy the finials? , Crane Ranch should the finials. (c) Would your answer be different in (b) if the productive capacity released by not making the finials could be used to produce income of $54,900? , income would by $