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Need help solving these two. Will report if asnwer is incorrect. Will be checking my self. thaanks ABC Company just received an offer from a

Need help solving these two. Will report if asnwer is incorrect. Will be checking my self. thaanks

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ABC Company just received an offer from a basket ball club to purchase jerseys. The company 0 00 has the capacity to produce the order. Below is the information pertaining to the offer. 10 Sale price of the offer $ 15.00 11 Quantity of order 100 Jerseys 12 Below is the per unit sale price and production costs of the jerseys: 14 15 Sale price 18.00 16 Direct materials 10.00 17 Direct labor 1.50 18 Variable overhead 0.50 19 20 Annual fixed cost $ 8,000 21 Annual sales volume 2,000 22 23 Required 24 a ) Compute the change in operating income if the order were (6 Marks) 25 accepted. 26 27 ABC Company manufactures machinery parts to be used 28 in its various products. One of the parts manufactured is H12. 29 The production cost per unit for H12 based on annual 30 production requirement is as follows: 31 32 Direct materials 4.50 33 Direct labor 3.00 34 Variable overhead 2.00 35 Fixed overhead 3.50 36 37 Annual production requirement 35,000 units 38 39 $ 70,000 of the total fixed overhead is direct fixed overhead and 40 the remaining is common fixed overhead. An outside supplier has 41 offered to sell the part to the company for: $ 12.00 42 43 Required: 44 b) Compute the annual impact on the company's (4 Marks) 45 net income as a result of buying the part from the 46 outside supplier. 47

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