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Please answer all Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year.
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Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. With a 75 - cent price increase, demand is expected to fall by 7,000 units. Current Projected Demand 76,000 units 69,000 units Selling price $9.50 $10.25 Incremental cost per unit $4.80 $4.80 If the price increase is implemented, operating profit is projected to A. decrease by $5,250 B. increase by $18,850 C. increase by $5,250 D. decrease by $7,000 Kennywood Inc., a manufacturing firm, is able to produce 1,400 pairs of pants per hour, at maximum efficiency. There are three eight -hour shifts each day. Due to unavoidable operating interruptions, production averages 850 units per hour. The plant actually operates only 28 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 501,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 517,000. Assume the month has 30 days. What is the master - budget capacity utilization level for this budget period? A. 524,800 units B. 501,000 units C. 517,000 units D. 556,200 units Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as follows: Direct materials $53 Direct labor 35 Variable overhead 36 Fixed overhead 38 Total $162 Crayola Technologies Inc. has contacted Rubium with an offer to sell 10,000 of the subassemblies for $141 each. Rubium will eliminate $90,000 of fixed overhead if it accepts the proposal. Should Rubium make or buy the subassemblies? What is the difference between the two alternatives? A. Buy; savings = $50,000 B. Make; savings $300,000 C. Make; savings = $80,000 D. Buy; savings = $90,000Step by Step Solution
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