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please find attached Qs Question it 14 Marsdon Company has an annual production capacity of 15,000 units. The costs associated with production and sale of

please find attached Qs

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Question it 14 Marsdon Company has an annual production capacity of 15,000 units. The costs associated with production and sale of the company's product are given below: Manufacturing costs: Variable $12 per unit Fixed (annual cost) $90,000 Selling and administrative costs: Variable (sales commissions) $3 per unit Fixed (annual cost} $60,000 The company presently is selling 12,000 units annually at a selling price of $28 each. A special order has been received from a distributor who wants to purchase 3,000 units at a special price of $20 each. Regular sales would not be affected by this order and the order could be lled without any impact on total xed costs. Sales commissions on the special order would be reduced by one- third. Required: Determine whether the company should accept the special order. Question # 15 Farrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further processed into Product X. Intermediate product B can be further processed into Product Y. The common input is purchased in batches that cost $36 each and the cost of processing a batch to produce intermediate products A and B is $15. Intermediate product A can be sold as is for $21 or processed furtherfor $14 to make Product X that is sold for $32. Intermediate product B can be sold as is for $44 or processed further for $28 to make Product Y that is sold for $64. Required: a. Assuming that no other costs are involved in processing the common input or in selling products, what is the profit (loss) from processing one batch of the common input into the products X and Y? Show your work! b. Should each of the intermediate products, A and B, be sold as is or processed further? Explain. Question #13 Recher Corporation uses part 0.89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,000 units of the part that are needed every year. Per Unit Direct materials $8.10 Direct labor $4.40 Variable overhead $8.60 Supervisor's salary $3.20 Depreciation of special equipment $2.60 Allocated general overhead $1.30 An outside supplier has offered to make the part and sell it to the company for $27.60 each. Ifthis offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents xed costs of the entire company. If the outside supplier's o'er were accepted, only $3,000 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of one of the company's other products, generating an additional segment margin of $16,000 per year for that product. Required: a. Prepare a report that shows the nancial impact of buying part Q89 from the supplier rather than continuing to make it inside the company. b. Well alternative should the company choose

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