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It costs Orkid Company 517 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product

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It costs Orkid Company 517 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product sells for $25. Homer Industries offers to purchase 5,000 units at $19 each. In the deal, Orkid will incur special shipping costs of $1.50 per unit. If the special offer is accepted and produced with unused capacity, net income will: increase $10,000 b. decrease $30,000 c. decrease $5,000 d. increase $2,500 QUESTION & Incremental analysis is the process of identifying the financial data that O do not change under alternative courses of action b. charge under alternative course of action care med under alternative course of action d. No correct answer is given QUESTIONS Felix Company manufactures a switch that is a part of a machine it also manufacturers. An outside supplier has offered to make 12,000 switches at S7 per wwitch. Felix cost analysts determined that Felix incurs $9 to manufacture one switch (56 variable and $3 fixed). Felix will not incur any variable costs if the switches are bought, but will continue to incur the fixed cost. Show an analysis that recommends whether Felix should continue making the switch or accept the outside supplier's offer. Be sure your analysis and recommendation are clearly presented and expressed, respectively. Show ALL computations. TTTT Paragraph Arial 3 (12) T- i a XDOQE Click Save and submit to save and submit. Click Save All Arters to save all ansters

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