Omega Widget Manufacturers has variable costs (of making 10,000 widgets) that equals $20 per widget. Total fixed costs for Omega equal $100,000. Currently the sales price is $32 per widget (Next year's anticipated sales = 10,000 units)

During the budgeting process, Manager Abel recommends continuing production at 10,000 uruts- Manager Belzos recommends manufacturing 12,500 units. Supervisor Wylie, who is the production line supervisor, and up for a promotion to manager of Omega's Lanai, Hawaii factory, and also gets a bonus equal to 5% of the product line's net income just "demands" the production amount be 16,000 unitss- (There is enough productive capacity to make 16,000 uillts.) Omega has no selling expenses or general expenses.)

Bonita Corporation has suggested they wiIl buy 3,000 widgets but are only willing to pay $25 per unit. Omega has the capacity to fiII the order. Fixed costs will stay the same. Can you solve this without doing income statements? (Hint: use contribution margin.)

QUESTIONS

10. How much in sales(expressed in units) has Omega predicted for next year - even if they manufacture 10,000 units?

11. How much in sales(expressed in units) has Omega predicted for next year - even if they manufacture 12,500 units?

12. How much in sales(expressed in units) has Omega predicted for next year - even if they manufacture 16,000 units?

13. What will the Per Unit Fixed Factory Overhead Cost be if 10,000 units are made and each just "absorb" its 'Full' share of that $100,000 Fixed manufacturing cost?

14. What will the Per Unit Fixed Factory Overhead Cost be if 12,500 units are made and each just "absorb" its 'Full' share of that $100,000 Fixed manufacturing cost?