MC Qu. 73 Lattimer Company had the following results... 2 Lattimer Company had the following results of operations for the past year: Points Skipped Sales (15,690 units at $12.35) Variable manufacturing costs Fixed manufacturing costs Selling and administrative expenses (all fixed) Operating income $ 185,250 $102,750 26,250 41,250 (170,250) $ 15,000 eBook References A foreign company whose sales will not affect Lattimer's market offers to buy 5.700 units at $8.20 per unit. In addition to existing costs, selling these units would add a $0.32 selling cost for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a Multiple Choice 52.280 loss $9.804 loss $5,871 profit $4104 loss $7,695 profit. 3 MC Qu. 76 Paxton Company can produce a component of... Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.10; direct labor, $14.10, variable overhead $3.10 and fixed overhead, $8.10. An outside supplier has offered to sell the product to Paxton for $35.40. Compute the net incremental cost or savings of buying the component 1 points Skipped Multiple Choice eBook $0 cost or savings per unit References $3.10 cost per unit $8.10 cost per unit. $3.10 savings per unit. $8.10 savings per unit MC Qu. 70 Ahngram Corp. has... 4 Ahngram Corp. has 1.000 defective units of a product that cost $3.10 per unit in direct costs and $6.60 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.10 per unit or reworked at an additional cost of $2.60 and sold at full price of $12.30. The incremental net income (loss) from the choice of reworking the units would be: points Skipped Multiple Choice eBook ($2,600) References $0. $2,600 O $4,100 $9,700