1. ABC Corporation produces a part that is used in the manufacture of one of its products. The 10,000 units of this part areas follows: $45,000 costs associatedwith the production Direct materials Direct labor 65,000 Variable overhead 30,000 Fixed overhead 70,000 Total Cost $210,000 Of the fixed overhead costs, $30,000 is avoidable. XYZ Company has offered to sell 10,000 units of the same part to ABC Corporation for $18 per unit. Assuming there is no other use for the facilities, ABC should A. make the part, as this would save $1 per unit B. make the part, as this would save $3 per unit C. buy the part, as this would save the company $30,000 D. buy the part, asthis would savethe company $3 per unit 2. When a multiproduct plant is being operated at capacity (capacity is limited), the products that should be emphasized arethose that provide the highest contribution margin A. ratio B. per sales dollar . per unit of product D. per unit of the limited resource 3. Chevren Company drills for oil, and delivers it to refining companies. Currently it is selling its crude oil at $20/barrel. Chevren has been asked to refine the oil for commercial use. For a standard of refined oil, Chevren will be paid $30/barrel. Chevren estimates that the additional labor and refining cost involved in further processing of a barrel of oil is$6/barrel. Chevren Company should continue selling crude oil at $20/barrel sell refined oil for an increasedprofit of $4/barrel sell the super crude oil to another company for $21/gallon D. do none of these A. . C.