Marionette Company manufactures dolls that are sold to various distributors. The company produces at full capacity for six months each year to mout peak demand, the manufacturing facility operates at 60% of capacity for the other six months of the year. The company has provided the following data for the year No. of units produced and sold 600,000 units Sales price $40 per unit Variable manufacturing costs $20 per unit Fixed manufacturing costs $800,000 per year Variable seling and administrative costs $5 per unit Fixed seting and administrative costs $600.000 per year Marionette receives an offer to produce 5,000 dolls for a special event. This is a one-time opportunity during a period when the company has excess capacity What is the minimum salen price the company should accept for the order? O A $25 OB. 540 C. $15 OD. $20 Armor Sports, Inc has two product lines-atting hemmets and football homes. The income statement data for the most recent year is as follows: Total Batting Helmets Football Helmets Sales Nevenue $930.000 $800.000 $330.000 Variable costs (540.000) 1250,000) (290.000) Contribution margin $390.000 $350.000 $40,000 Fixed costs (180,000) 190.000) 190,000) Operating income (los) $210.000 $200.000 5:50.000) What is the effect of dropping football helmets line on the operating income of the company? (Assume that fored costs remain unchanged and that there would be no adverse efect on other sales) OA Operating income will increase by 590.000 OB Operating income will decrease by $40.000 OC. Operating income wil decrease by $330,000 OD. Operating income will increase by $50,000 Fuller Industries is considering replacing a machine that is presently used in its production process Which of the following amounts represents a sunk cost? Replacement Machine $45,000 5 0 Original cost Remaining useful life in yoars Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Machine $55,000 5 5 $33.000 $9.000 $0 $8,000 SO $4,000 A. $33,000 B. $55,000 OC. $9.000 D. $45,000