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Problem 3 (5) Squishy Company produces 18,000 units of Part YUK each year to use in other products. Solid Corporation has offered to provide Part

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Problem 3 (5) Squishy Company produces 18,000 units of Part YUK each year to use in other products. Solid Corporation has offered to provide Part YUK at a price of $1.38 per unit. Squishy Company's standard cost card for Part YUKI Resource Per Unit Direct materials $0.78 Director SO 14 Variable overhead SO 13 Fixed overhead 52275 Total $4.00 Calculate the total amount of fixed costs that must be avoidable such that doesion-makers would be indifferent, all else equal between making and buying Product YUK. State clearly why each specific cash flow you include in your analysis is relevant Calculate the total amount of fixed costs that must be avoidable such that decision-makers would be indifferent, all else qual, between making and buying Product YUK. State clearly why each specific cash flow you include in your analysis is relevant Resource Make Buy Comments Direct materials Direct labor Variable overhead Purchase price Total Problem 4 (5) Color Corporation has the following operating income report for its two products Magenta Ochre Total Sales $3,000 $1,000 54.000 Variable costs 900 SOD 1.400 Contribution margin 2.100 500 2.600 Fixed costs 1,400 NOD 2.200 Operating income 200 (3.00) Fixed costs consist of corporate headquarters overhead of $1,000 (allocated according to proportion of sales and product-line-specific discretionary items that is cost asociated with resources that could be eliminated if the product line did not exi Asume there are intangible benefits associated with Product Ochre (ay, some effect on our company's reputation) What is the minimum annual value of these benefits that would lead Color Corporation to choose to keep Product Ochro mother than eliminate it

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