Martin company incurred the following costs for 50,000 units: Variable Costs................................$180,000 Fixed costs.......................................240,000 Martin has received a special order from a foreign company for 5,000 units. There are no non-financial factors affected. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $8,500 for shipping. If Martin wants to earn $8,000 on the order, what should the unit price be?

3.30

5.20

11.70

6.90

Lawrence Legal Services recently billed a customer $720. Labor hours were 6 and the cost of the materials used was $150. If the company's hourly labor rate was $75, what material loading charge was used?

50%

40%

100%

80%

Billings Company has the following costs when producing 100,000 units: Variable costs..............................$800,000 Fixed costs.................................1,200,000 An outside supplier has offered to make the item at $6 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $220,000. The net increase (decrease) in the net income of accepting the supplier's offer is

$(20,000)

$1,120,000

$380,000

$420,000

The cost to produce Part A was $20 per unit in 2014. During 2015, it has increased to $22 per unit. In 2015, supplier company has offered to supply Part A for $18 per unit. For the make-or-buy decision,

A)	differential costs are $4 per unit
B)	net relevant costs are $2 per unit
C)	incremental revenues are $4 per unit.
D)	incremental costs are $2 per unit