Maize and Blue Co, is a multinational enterprise (MNE) that manufactures many different products as parts for the aerospace industry, The new control ler, Mary, has been asked by the president of the company to provide accounting data for decisions she needs to make Each question is worth L point. Special Order: Suppasc Wolverine Corp. approached your company, Maizc and Blue Co., with a special order. Wolverine Corp. wishes to purchasc S9,000 'warning" decals for its clectrical panels and offers to pay you $0.89 per decal. Your company has enough capocity to handle the special order and its total production cost is $0.S8 per decal, as follows Variatve irect labor 1. What are the total relevant costs if Maize and Blue accepts the special order? Submit Answer Tries 0/10 2. What is the increase or decrease in net operating income from the order if Maize and Blue accepts the special order? Enter an increase as a positive number and a decrease as a negative number Submit Answer Tries 0/10 3. Discontinuing a Product Line: Maize and Blue is considering discontinuing one of its product linas. During the ine's income statament showed the tollowing Fixed manufacturing over ea costs account for 10% of the cost of goods, while on y 30% of the Operating expenses are nxed. Since the product line is ust one of Maize and Blue's products, only $920,000 of total fixed expenses the majority of which is advertising will be eliminated if the product line is discontinued, If the company decides to discontinue the product line, how much will the company's net operating income increase or decrease? Enter an increase as a postve number and a decrease as a negathe number Submit Anwer Tries 0/10 Answer questions 4 and 5 with the following informations Maize and Blue packages small LED lights for plane instrument panels. Cost data for this packaging process are as follows Packaging materials (e.g, baxes, bubble-wrap) Packaging direct labor ndirect materal (e.g., tape, labels) Packaging supervision (variable) Other fixed manufacturing overhead Total packaging coat Unit Cost $2.22 $0.61 $0.44 $0.38 S1.22 $4.92 An outside supplier has offered to do all the packaging or a price of $4 per unit for all packaging related activities if Maize and Bu e signs one-year contract for min num of 152 300 units produced each year. Maize and Blue could use the factory space now occupied by the packaging process to expand production to anathar product line. This expansion is cxpected to ganarate an additional $170,000 in profit per year. 4. Make or Buy: What are the total relevant costs of continuing to package the products internally; that is, which of the annual costs is avoidable if Maize and Blue outsources the packeging process? (1 point) Submit Answer Tries 0/10 S. Make or Buy: What is the relevant cost of outsourcing the packaging process considering the profit from expanding production of another product? (1 point) Submit Answer Tries 0/10
