MC Qu. 77 Walters manufactures a specialty food... 5 Walters manufactures a specialty food product that can currently be sold for $21.80 per unit and has 19,800 units on hand. Alternatively, it can be further processed at a cost of $11,800 and converted into 11,800 units of Deluxe and 5,800 units of Super. The selling price of Deluxe and Super are $31.20 and $19.80, respectively. The incremental net income of processing further would be: oints Multiple Choice eBook $43,800. References $51,360. $39,560. O $1,800. $17,800. 6 MC Qu. 49 Epsilon Co. can produce a unit of product... Epsilon Co. can produce a unit of product for the following costs: 1 points Direct material Direct labor Overhead Total costs per unit $ 7.30 23.30 36.50 $67.10 Book References An outside supplier offers to provide Epsilon with all the units it needs at $60.15 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to: Multiple Choice Make since the relevant cost to make it is $4155. Buy since the relevant cost to make it is $41.55. Buy since the relevant cost to make it is $67.10. Make since the relevant cost to make it is $56.15. O Buy since the relevant cost to make it is $56.15. 7 MC Qu. 74 Markson Company had the following results... Markson Company had the following results of operations for the past year: 1 points Sales (8,000 units at $19.00) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income $ 152,000 $82,000 14,000 8,000 19,000 (123,000) $ 29,000 eBook References A foreign company whose sales will not affect Markson's market offers to buy 2.000 units at $12.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,500 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: Multiple Choice Decrease by $5.750. Increase by $2,500 Decrease by $1,500 Decrease by $4,000 Increase by $1,000