Please complete homework for Module 16 in accounting.

Question 1 Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $5,300. The company is evaluating the desirability of adding masts, sails, and rigging to the hulls prior to sale at an additional cost of $2,100. The completed sailboats could then be sold for $6,700 each. Calculate the net benefit (cost) of processing the boat hulls into sail boats. Assume sales volume will not be affected. Use a negative sign with your answer, if appropriate. Answer Question 2 Relevant Costs for Equipment Replacement Decision Health Scan, Inc. paid $50,000 for X-ray equipment four years ago. The equipment was expected to have a useful life of 10 years from the date of acquisition with annual operating costs of $50,000. Technological advances have made the machine purchased four years ago obsolete with a zero salvage value. An improved X-ray device incorporating the new technology is available at an initial cost of $146,000 and annual operating costs of $23,000. The new machine is expected to last only six years before it, too, is obsolete. Asked to analyze the financial aspects of replacing the obsolete but still functional machine, Health Scan's accountant prepared the following analysis. After looking over these numbers, the Center's manager rejected the proposal. Six-year savings [($50,000 $23,000) 6] Cost of new machine Undepreciated cost of old machine Advantage (disadvantage) of replacement $162,000 (146,000) (30,000) $(14,000) Calculate the net benefit (cost) of purchasing the new machine. Answer Question 3 Outsourcing (Make-or-Buy) Decision Mountain Air Limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of 10,000 units, the predicted cost per unit of an auto air purifier follows. Direct materials Direct labor Factory overhead Total $8.00 1.50 6.00 $15.50 These cost predictions include $50,000 in facility-level fixed factory overhead averaged over 10,000 units. One of the component parts of the auto air purifier is a battery-operated electric motor. Although the company does not currently manufacture these motors, the preceding cost predictions are based on the assumption that it will assemble such a motor. Mini Motor Company has offered to supply an assembled battery-operated motor at a cost of $3.50 per unit, with a minimum annual order of 5,000 units. If Mountain Air accepts this offer, it will be able to reduce the variable labor and variable overhead costs of the auto air purifier by 50 percent. The electric motor's components will cost $2.00 if Mountain Air assembles the motors. (a) Calculate the net benefit (cost) of outsourcing the electric motors from Mini Motor Company. $Answer (b) Calculate the net benefit (cost) of outsourcing the electric motors from Mini Motor Company, assuming the motor-assembly space could be rented to another company for $21,000 per year. $Answer (c) Management should consider which of the following nonquantitative factors in deciding whether to make or buy the motors. The quality of their own and the supplier's motors. The dependability of the supplier. Whether Mini Motor has a track record of meeting its commitments. Whether they can depend on Mini Motor to supply motors for a number of years or whether it is attempting to use some temporarily idle capacity. All of these. Question 4 Shanghai Exports, LTD produces wall mounts for flat panel television sets. The forecasted income statement for 2014 is as follows: Shanghai Exports, LTD Budgeted Income Statement For the Year 2014 Sales ($ 44 per unit) $ 4,400,000 (3,200,000) Cost of good sold ($ 32 per unit) Gross profit Selling expenses ($ 3 per unit) Net income 1,200,000 (300,000) $ 900,000 Additional Information (1) Of the production costs and selling expenses, $800,000 and $100,000, respectively, are fixed. (2) Shanghai Exports, LTD received a special order from a hospital supply company offering to buy 12,500 wall mounts for $30. If it accepts the order, there will be no additional selling expenses, and there is currently sufficient excess capacity to fill the order. The company's sales manager argues for rejecting the order because "we are not in the business of paying $32 to make a product to sell for $30." Calculate the net benefit (cost) of accepting the special order. $