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please answer all the question , otherwise skip it Question #2 Consider the following information, prepared based on monthly production and sales of 100,000 units:

please answer all the question , otherwise skip it

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Question #2 Consider the following information, prepared based on monthly production and sales of 100,000 units: Cost per Unit $12.00 Category Variable manufacturing costs S45.00 Variable marketing costs The firm has total fixed costs of $3,000,000 and currently sells the product for $120 per unit. a) Assume the company is producing and selling 100,000 units per month. It is considering an arrangement where an outside manufacturer would produce and ship the product directly to customers. Under this arrangement, variable marketing costs would decrease 70% per unit and $2,100,000 in fixed costs would be avoided. What is the maximum amount per unit the company would be willing to pay to the outside manufacturer? b) List and describe other factors that should be taken into consideration when deciding whether to accept this offer. Be specific in your responses. Question #3 A consulting company performs a "basic" market analysis for a client. It incurs costs of 5100,000 in performing the analysis and plans to sell the report to the client for $250,000. After reviewing the initial report, the client asks the firm if it is willing to do a more extensive report. The client offers to pay $450,000 for a more extensive report. If the more extensive report is done, the client will NOT pay the $250,000. If the consulting firm estimates it will require 5210,000 in additional expenses to complete the more extensive report, should it agree to do the more extensive report? Why or Why not? Be specific in your response. Question #4 Assume an engineering company provides services for three types of clients. Each service requires a different amount of a specific form of specialized labor that is in limited supply. If the company is limited to 12,000 hours of this specialized labor, how many clients of each type should it accept in order to maximize operating income? Client Type $1,700 $3,800 $5,300 Revenue per client Variable costs per client Specialized labor hours required per client $800 51,400 $2,700 6 15 20 Maximum clients available 800 600 200

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