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Personal hotspot :2 connectionfs).Used 1.71 GB Edit TACTICAL DECISION-MAKING PROBLEMS (Show your complete solution) A. Quikcook Microwave Company currently manufactures the doors that it uses for its microwave ovens. The annual costs to manufacture the 40,000 doors needed each year are as follows: Total Cost Direct material ________________________________________ $200,000 Direct labor ______________________________________ 40.000 Variable manufacturing overhead 80.000 Fixed manufacturing overhead....... 320,000 Total ___________________________________________________________________ $640,000 Raffy Tulfo Corporation has offered to provide Quikcook with all of its annual door needs for $14 per door. If Quikcook accepts this offer, only 40% of the fixed overhead above could be totally eliminated. Also. Quikcook has no alternative use for the idle facilities if the decision was made to go with the offer. Based on this information, would 0uikcook be better off to make the doors or buy the doors and by how much? B. Obama Corporation has received a request for a special order of 6.000 units of product A90 for $21.20 each. Product A90's un'rt product cost is $16.20, determined as follows: S 6.1 Direct materials ___________________________________ 0 Direct labor ________________________________________________ 4. 20 Variable manufacturing overhead... 2.30 Fixed manufacturing overhead..- 3. 60 516.2 Unit product cost _________________________________________ 2 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.20 per unit and that would require an investment of $21,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted. the company's overall net operating income would increase [a] U\" EIEI Mobile View Tools El 0