MANAGERIAL ACCTG QUIZ SHORT TERM DECISION MAKING {Managerial Acctg OM BSBA 3 Section D) 1. MAKE 0R BUY PROBLEM 1 Mabait Company has 30,000 hours of idle capacity. They need 25,000 units of a component part used in its product lines. It is estimated that each unit will take onehalf machine hour for production. The following information is available: Cost to make the part: Materials P 30.00 Direct labor 40.00 Factory overhead is 75% of direct labor cost per unit: variable factory overhead is 60% of factory overhead per unit Cost to buy the parts per unit from the supplier P 94.00 If the company buys the parts rather than producing them. they will save 40% of fixed factory overhead per unit. REQU I RE D: 1. How much is the relevant {avoidable} cost per unit of making the part? REQUIRED: 1. How much is the relevant (avoidable) cost per unit of making the part? 2. How much is the total relevant cost of making the part? 3. How much is the total purchase price of buying the product? 4. Should the company manufacture the parts or should it buy them from an outside supplier? What is the incremental increase (decrease) in profit? (20 Points) Enter your answer 2. SELL AS IS OR PROCESS FURTHER PROBLEM 1 Malakas Corporation operates at 80% capacity, and sells the 75,000 lbs. of by-product at P3.00 per pound. If further processed at a cost of P2.50 per pound of input, 70% can be sold at P6.5 per pound as Product X, 20% can be sold at P4.00 per pound as Product Y, and 10% will be lost in the process. Lightshot REQUIRED: Screenshot is saved to Screenshot_29.png. Click here open in the folder.2. SELL AS IS OR PROCESS FURTHER PROBLEM 1 Malakas Corporation operates at 80% capacity, and sells the ?5,000 lbs. of byproduct at P3.00 per pound. If further processed at a cost of P250 per pound of inputr 70% can be sold at P6.5 per pound as Product X. 20% can be sold at P400 per pound as Product V, and 10% will be lost in the process. REQUIRED: 1. HOW much is the increase (decrease) in profit if the byproduct is process further? (10 Points) Enter your