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Question 1 3.75 pts Band Industries has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces and sells 7.500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $1.50 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1.000 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order? Yes, because net income would increase by $2.000 No, because net income would decrease by $1.500 Yes, because net income would increase by $7.500 No, because net income would decrease by $5.500 Question 2 3.75 pts A budget performance report shows budgeted amounts, actual amounts, and differences between budgeted and actual amounts. True False D Question 3 3.75 pts Band C company provided the following direct materials cost information Compute the direct materials quantity variance Standard costs assigned Direct materials standard cost (405,000 units @ $2.00/unit) $ 810,000 Actual costs: Direct Materials costs incurred (403,750 units @ $2.20/unit) $ 888,250 52.750 Unfavorable 52.750 Favorable $2.500 Favorable $2.500 Unfavorable