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Part II. Problem Solving: (60 points) Directions: Read the given problems carefully. Solve the following requirements and show your solutions. Round off your final answer

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Part II. Problem Solving: (60 points) Directions: Read the given problems carefully. Solve the following requirements and show your solutions. Round off your final answer into two decimal places. Put a box in your final answers. Problem A: Mikaya Company produces merchandise with the following information: DECISIONS DECISION GUIDELINES 1. Make or buy (insource or outsource) a Where can we save? component part? 2. Accept or reject special sales order If there is incremental profit, accept. 3. Sell as is or process further If there is profit from further processing. then go ahead. 4. Optimization of resources Prioritize the product that that gives the highest contribution margin on the limited resource 5. Replace or retain an old asset? If the net cash inflows is greater than the net outflows, replace the asset. 6. Continue operations or temporary If sales are greater than the shutdown shutdown point, better continue operating. 7. Sell now or later If the expected increase in sales is greater than the incremental cost of storage, then sell later. Part II. Problem Solving: (60 points) Directions: Read the given problems carefully. Solve the following requirements and show your solutions. Round off your final answer into two decimal places. Put a box in your final answers. Problem A: Mikaya Company produces merchandise with the following information: DECISIONS DECISION GUIDELINES 1. Make or buy (insource or outsource) a Where can we save? component part? 2. Accept or reject special sales order If there is incremental profit, accept. 3. Sell as is or process further If there is profit from further processing. then go ahead. 4. Optimization of resources Prioritize the product that that gives the highest contribution margin on the limited resource 5. Replace or retain an old asset? If the net cash inflows is greater than the net outflows, replace the asset. 6. Continue operations or temporary If sales are greater than the shutdown shutdown point, better continue operating. 7. Sell now or later If the expected increase in sales is greater than the incremental cost of storage, then sell later

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