Prin Reflec Problem 3 (10 points) Parrot Inc. makes picture frames. Parrot is considering buying hangers for its frames for $1.80 per frame. The company currently makes the hangers and incurs the following costs: Cost per unit Direct Materials $.75 Direct Labor .30 Variable Overhead 35 Fixed Overhead .80 $2.20 Total Manufacturing Costs Required: Determine if Parrot Inc. should make or buy the hangers (provide numerical support and include at least two issues the company should consider before making the decision that is not numerical. "Assume the fixed costs cannot be eliminated if the company chooses to buy the hangers.) Problem 4 (10 points) Ferry's Furries sells stuffed animals in two sizes. The 12" size has a $6 contribution margin and the 24" size has a $15 contribution margin. The 12" size requires 2 machine hours to produce and the 24" size requires 3 machine hours to produce. Required: Determine if Ferry's Furries should manufacture 12" or 24" size first (provide numerical support and include at least two issues the company should consider before making the decision that is not numerical.) Problem 1 (12 points) Casual Nightwear has offered to buy 10,000 pairs of fruity flannels from Panama Pajamas for $20 per pair. flannels for $25 per pair to other customers. Panama Pajamas has the following costs per fruity flannel Panama Pajamas has the capacity to make the pajamas for Casual Nightwear but typically sells the fruity produced: $8 /unit DM $11/unit DL $2 /unit Variable overhead $2/unit Fixed overhead Required: Determine if Panama Pajamas should accept or reject the offer (provide numerical support and include at least two issues the company should consider before making the decision that is not numerical.) Problem 2 (10 points) Light and Fluffy typically sells bottles of shampoo for $10 per bottle. The manufacturing costs are $5 per bottle. Light and Fluffy is considering processing the shampoo further and making a shampoo/conditioner product. It plans to sell 1,000 bottles of either product. The additional variable processing costs to process the shampoo into a shampoo/conditioner product is $4 per bottle. The shampoo/conditioner could be sold for $16 per bottle. Variable selling costs are $1 per bottle for shampoo but would be $2.50 per bottle for shampoo/conditioner. Required: Determine if Light and Fluffy should process further and sell shampoo/conditioner or not (provide numerical support and include at least two issues the company should consider before making the decision that is not numerical.)