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Olive Corp. currently makes 10,200 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing

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Olive Corp. currently makes 10,200 subcomponents a year in one of its factories. The unit costs to produce are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unite $30 25 21 11 $87 An outside supplier has offered to provide Ollve Corp. with the 10,200 subcomponents at an $92 per unit price. Fixed overhead is not avoidable. If Corp. accepts the outside offer, what will be the effect on short-term profits? Multiple Choice $163,200 decrease $112,200 Increase O $112,200 decrease $760,000 increase Olive Corp currently makes 13,600 subcomponents a year in one of its factories. The unit costs to producere Direct materiale Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $25 23 14 10 An outside supplier has offered to provide Olive Corp, with the 13,600 subcomponents at a $90 per unit price. Fixed overhead is not avoidoble. What is the maximum price Olive Corp, should pay the outside supplier? Multiple Choice $100 a $90 $72 $62 Violet has received a special order for 140 units of its product. The product normally sells for $2.700 and has the following manufacturing costs Direct materiale Direct labor Variable manufacturing overhead Pixed manufacturing overhead Unit cost Per unit 5 610 330 400 1.100 $2,440 Assume that Violet has sufficient capacity to fill the order without harming normal production and sales. What minimum price should Violet charge to achieve a $33,600 incremental profit? Multiple Choice $1,710 $2,440 $1,340 $1,580 Almond has received a special order for 7000 units of its product at a special price of $50. The product normally sells for $61 and has the following manufacturing costs por unit 510 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit cost $50 Assume thot Almond has sufficient capacity to fill the order. I Almond accepts the order, whor effect will the order have on the company's short-term profit? Multiple Choice $77,000 increase Zero $56,000 increase 193 no Hero

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