(NEEDING HELP WITH QUESTION 4 and a check on 3)

3. Questions 3 and 4 refer to the following: The Melville Company produces a single product called a Pong. Melville has the capacity to produce 60,000 Pongs each year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows: Direct materials Direct labor Variable factory overhead Fixed factory overhead Variable selling expense Fixed selling expense a. $51.50 b. $49.00 c. $37.00 d. $38.50 $15 12 8 9 8 3 The regular selling price for one Pong is $80. A special order has been received by Melville from Mowen Company to purchase 6,000 Pongs during the year. If this special order is accepted, the variable selling expense will be reduced by 75%. However, Melville will have to purchase a specialized machine to engrave the Mowen name on each Pong in the special order. This machine will cost $9,000 and it will have no use after the special order is filled. All other fixed costs will be unaffected by the special order. b. $41,000 increase. c. $198,000 increase. d. $50,000 increase. I Assume that Melville can sell 54,000 units of Pongs to regular customers during the year. What is the relevant cost per unit of producing the special order for Mowen? Assume Melville can sell 58,000 units of Pong to regular customers during the year. If Mowen Company offers to buy the special order units at $70 per unit, the effect of accepting the special order on Melville's net income for the year will be a: a. $66,000 increase.

Quastions 3 and 4 refar to the followingt Tho Melvillo Company produces a singlo product called a Pong. Melvillo has the capacity to produce 60,000 Pongs cach year. If Melville produces at capacity, the per unit costs to produce and sell one Pong are as follows: DirectmaterinlsDirectIbborVariablofuctoryoverheadFixedfactoryoverheadVariablesollingexpenseFixedsellingexpenseS15128983 The regular selling price for one Pong is 580. A special order has been received by Melville from Mowsen Company to purchase 6,000 Pongs during the year. If this special order is acceptod, the variablo selling expense will be reduced by 75%. However, Melville will have to purchase a specialized machine to engrave the Mowen name on each Pong in the special order. This machine will cost 59,000 and it will have no use after the epecial order is fillod. All other fixed costs will be unaffected by the specinl order. 3. Assume that Melvillo can sell 54,000 units of Pongs to regular customers during the year. What is the relevant cont per unit of producing the special order for Mowen? a. 551.50 b. 549.00 c. $37.00 d. 538.50 4. Assumo Melvillo ean sell 58,000 units of Pong to regular customen during the year. If Mowen Company offers to buy the enecinl anter units at 570 per unit, the effect of accepting the special order on Melville's net incomo for the year will be a: a. $66,000 incrense. c. $198,000 increase. d. $50,000 increase