MUST BE DONE IN WORD 0R EXCEL. Question 1 Quincy Inc. manufacturers and sells bakery products and has decided to put a new product on the market - an ice cream cake. The product will be sold in boxes of 24. The price of each box will be $8. The company will use its excess capacity to manufacture the product. The accountingdepartment has decided that $100,000 worth of fixed overhead cost should be allocated to the new product. The accounting department has budgeted the following costs based on a production of 100,000 boxes. Ice cream cake (per box) COST per box of 24 Direct materials (includes the ice cream and all other $3.00 inredients . Direct labour (per box) 2.00 Fixed and variable overhead (per box) 1.50 6-50 Quincy can purchase ice cream units, one of the ingredients in the cake, from a dairy company.The dairy company would sell the ice cream units for $0.90 for 24 units. If Quincy buys the ice cream units from the dairy company, direct labour and variable overhead costs would be reduced by 10%. The direct material costs would be 20% lower than the original budgeted amount and would not include the cost ofthe ice cream units purchased from the dairy company. Required: 1. Should Quincy make or buy the ice cream units? Explain your decision. 2. Calculate the maximum amount the Quincy should pay for the ice cream units 3. Suppose that sales projections are revised in that Quincy could sell 125,000 boxes instead of 100,000 boxes. In such a case, to produce ice cream, it would need to lease anew machine for $10,000 a year. Under these conditions should Quincy make the 125,000 ice cream units or buy them from the dairy company? Explain your decision. 4. Suppose that sales projections are revised and Quincy could sell 125,000 boxes insteadof100,000 boxes and that it would need to lease a machine. Would it be better off if it makes the ice cream for the first 100,000 boxes and buy the remainder from the dairy company? Explain your decision. Assumed the 90-cent price is available for any volume. 5. List qualitative factors in Quincy should consider when determining whether it shouldmake or buy the ice cream units MUST BE DONE IN WORD OR EXCEL. Question 2 Furniture shop company manufacturers three types of computer desks. The income statement for the three products and the whole company is shown below. $50,000 $50,000 $55,000 $175,000 25,000 40,000 50,000 125,000 15,000 12,000 3,000 35,000 41,000 52,000 68,000 151,000 59,000 $3,000 ($3,000) $14,000 The company produces 1000 units of each product. The company's capacity is 9000 labour hours. The labour for each product is 4 hours for Product A, three hours for Product B, and two hours for Product C. Fixed costs are allocated based on labour hours. Required 1. If the current production levels are maintained should the company eliminate product C? Explain your reasoning and show your calculations. 2. If the company can sell unlimited quantities of any of the three products, which product should be produced? 3. Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 500 units of Product C, what would the minimum sales price be per unit for this order? 4. The company has a government contract that requires it to supply 500 units of each product to a customer. The total market demand for a single product is limited to 1000 units, including those units in the government contract. How many units of each product should the company manufacture to meet its commitment to the government and maximize its total contribution margin