Orders

A foreign company, whose sales will not affect the company's market, offers to buy 5,000 units at $3 per unit. In addition to variable manufacturing costs, producing and selling these units would increase overhead costs by $500 and selling and administrative expenses by $1,500. What is incremental income from accepting special order? $3,000 $12000 $18,000 S23,000 QUESTION 42 A company has a machine with a book value of $80,000 and a remaining five-year useful life. A new machine is available at a cost of S125,000, and the company can receive $70,000 for trading in its old machine. The new machine will reduc variable manufacturing costs by $14,000 per year over its five-year useful life. What is net incremental income or loss trom replacing the machine? $(15.0000 O $(41,000) $15,000 $41,000 QUESTION 43 A company inadvertently produced 5,000 defective units. The units cost $10 each to produce. A salvage company will purchase the defective units as they are for $3 each. The company's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $10. What is incremental net income if units are reworked and sold instead of being sold as is? o $5,000 O $10,000 O $15,000 O $20,000 QUESTION 44 A company makes plain cookies. The company currently is producing 1,000 bags. The variable production costs are $2 per bag and total fxed costs are $1,000. The cookies can be sold as they are for $5 per bag, or they can be processed further into frosted cookies at an additional cost of $1 per bag. The additional processing will yield 1,000 bags of frosted cookies, which can be sold for $7 per bag. The fixed costs will remain $1,000. What is net incremental income from (o net advantage of) processing cookies into frosted cookies? O $1,000 O $2,000 O $3,000 O $5,000