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Question 6 8 pts Our company manufactures and sells calculators for $80 each. A major University has offered us $55 per calculator for a one-time order of 500 calculators. Our costs to manufacture a calculator include: direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead. $15 per unit: and fixed manufacturing overhead. $12 per unit. Assume that we have excess capacity and the special order will not affect regular sales. What is the change in operating income that would result from accepting this special sales order? [ Select] Should we accept the special order? [Select) Question 7 4 pts Our company manufactures and sells seven different products to different markets. Financial data for product X2 is as follows: revenue, $45.000; variable expenses, $35,000; and fixed expenses $15,000. $12,000 of the fixed costs can be eliminated and there will be no adverse effect on sales of other products. What is the effect of dropping this product on the operating income of the company? Operating income will increase by $2.000. Operating income will decrease by $2,000. Operating income will decrease by $7,000. Operating income will increase by $7,000, Question 8 4 pts Our company manufactures a component used in the production of its products. Our costs to manufacture the part include direct materials, $25 per unit; direct labor, $20 per unit; variable factory overhead, $15 per unit: and fixed manufacturing overhead. $12 per unit. A supplier has offered to sell us the part for $65 per unit. If our company chooses to outsource, the fixed costs could be reduced by 55%. We would have no other use for the facilities currently employed in making the component. What would be the effect if our company decides to outsource? The effect on operating income is so. We would save $1.60 per unit. Costs would increase by $1.60 per unit. We would save $0.40 per unit. Question 9 4 pts Our company produces a product that is currently sold for $50 per unit. We are considering processing it further into an upgraded version of the current product. If we do so, we can sell the product for $60, we will incur additional costs of $85,000, and we can sell 8,000 units. Which of the following is true? O Sell now at $50 since doing so will maximize operating income Process further because operating income will increase by $5,000. Process further because operating income will increase by $7.500. O Process further because operating income will increase by $8,000