Please disregard the incorrect answers labeled by the red flag (they are from a previous attempt) and use the new provided data table above to fill in the correct answers, thankyou :)

1. The Jersey Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $8.00 a pair, and allocated fixed manufacturing cost is $2.25 a pair. It has enough idle capacity available to accept a one-time-only special order of 10,000 pairs of slippers at $8.25 a pair. Jersey will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) S0. (b) $22,500 increase. (c) $80,000 increase, or (d) $82,500 increase? Show your calculations. 2. The Savannah Company manufactures Part N 498 for use in its production line. The manufacturing cost per unit for 25,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) - X Data table ost is $8.00 a pair, and allocated fixed manufacturing cost is $2.25 a pair. It has enough idle capacity I not incur any marketing costs as a result of the special order. What would the effect on operating income (c) $80,000 increase, or (d) $82,500 increase? Show your calculations. Direct materials $ 3 35 ing calculations Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead allocated 16 21 75 Total manufacturing cost per unit The Range Company has offered to sell 25,000 units of Part No. 498 to Savannah for $70 per unit. Savannah will make the decision to buy the part from Range if there is an overall savings of at least $20,000 for Savannah. If Savannah accepts Range's offer. $10 per unit of the fixed overhead allocated would be eliminated. Furthermore, Savannah has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. 1. The PJ Company manufactures slippers and sells them at $11 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost is $1.55 a pair. It has enough idle capacity available to accept a one-time-only special order of 35,000 pairs of slippers at $5.05 a pair. PJ will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) SO. (b) S54,250 increase. (C) $122.500 increase, or (d) $176,750 increase? Show your calculations. Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Special order price per unit 5.05 Variable manufacturing cost per unit Contribution margin per unit * units in special order 35,000 Effect on operating income What would the effect on operating income be if the special order could be accepted without affecting normal sales? 3.50 $ 1.55 A SO B $54.250 increase C. $122.500 increase D. $176.750 increase $ 42 2. The Savannah Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 25.000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) For Savannah to achieve an overall savings of $15.000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) 575,000. (D) $215,000. (C) $115,000 or (d) $275,000? Show your calculations. What other factors might Savannah consider before outsourcing to Acre? Begin by selecting the labels to calculate the relevant costs that would have to be saved and then enter in the supporting calculations. Cost to purchase S 1.425,000 Total relevant costs of making: (per unit) Variable manufacturing costs Fixed costs eliminated Costs saved by not making 25,000 * units in the offer Total costs saved 1.225,000 Extra costs of purchasing outside 200,000 15,000 Minimum savings required Necessary relevant costs to be saved For Savannah to achieve an overall savings of $15.000, the amount relevant costs that would have to be saved by using the released facilities in the anufactu $ 49 575 ould be: A $275.000 XB. $75.000 C. $215.000 D. $115.000