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Ev v 21 AaBbCcDdEe AaBb CcDdEe AaBbCcDc Heading 1 Emphasis Flash Clicker Assignment: Ch. 12 Clicker questions will be asked in class based on your completion of this preparation guide. Example in class question: What is the answer to Question 2? You will not have time to complete this guide in class! 1. A sunk cost is a cost that 2. Opportunity cost is 3. A company is considering using their equipment to manufacture and sell either cell phones or tablets. The estimated revenue and costs that they could earn from each alternative is listed below Product Line Cell Phones Tablets Estimated Revenue $850,000 $1,050.000 Estimated costs 5700.000 What is the amount of incremental net income that would result from selling tablets? 4. Marley & Co. is currently manufacturing a component unit. They are considering outsourcing the part to a supplier that would produce the part for $200 per unit the component units are purchased one of the companys feed manufacturing on head will be solded. The cost per unit of manufacturing the part internally is as follows: Direct Materials Fred Manufact What is the incremental net income ornet loss per unit that would the component part instead of purchasing it? 5. Aurora Concursos per m y $56. A whole 1527 variabled 11 d offers to buy 2.500 units e product that This special de 5. Aurora Co, Incurs costs of $18 per unit ($27 variable and $11 fixed) to make a product that normally sells for $56. A wholesaler offers to buy 3.500 units at $36 each. This special order will result in additional shipping costs of $1.15 per unit. Assuming Aurora has adequate manufacturing capacity, what should the company do? 6. Jones Industries is considering the replacement of a piece of equipment with a newer model The following date has been collected: New Equipment Purchase price ed depreciation Annual operating costs Old Equipment $150.000 100,000 70,000 the old woment is replaced now, can be sold for $15,000. Both the old equipment's remaining and the new ment's useful is 5 years. The company uses streghe line depreciation with a rere salvage value for all of its assets What is the increase or decrease in the cost of replacing the the MacBook Pro