py curenily makes a part and te considering bauytng is from a company that has offered to sugely it for per unit. This year, per-unit production costs to produce 50,000 units were: 83,000, (6,46O Direet materials 93,b50 88.00 5.40 Direct labor Overhead Total 18. $180,000 of the total overhead costs were variable; $65,450 of the fixed overhend costs casmot be avoided even if x Company buys the part. If the company buys iP rodhuction next year is expected to Increase to 53,350 units. If X Company contimes to make the part Instend of buying it, the part, the resources that are used to make it cannot be used for anything else. it will save Questions 6, 7, and 8 refer to the following information At the end of the year, a company offered to buy 4,520 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $17.00 each. The following information that X Company made and sold to its regular customens during the year Cost of goods sold Period costs Per-Unit $7.94 2.78 Total $551,036 192,932 Total $10.72 $743,068 Fixed cont of goods sold for the year were $150,598, and fixed period costs were $99,936. Variable period costs include selling commissions equal to 2% of revenue. p Profit on the special order ie 6. AO $7,243 BO $9,053 CO S11,317 DO 14146 EO 17682 FO $22,103 Assume the following two changes for the special order: I1) variable cost of goods sold will decrease by S0.78 per commissions. What would be the effect of these two changes on the special order profit? unit, and 2) there will be no selling 8 pt. There is concern that regular wi 8. AO $4,747 BO 34 CO,418 DO S9,272 E 1,590 FO 14,87 &ptX Company currently buys 10,000 units of a component part each year from a supplier for $7.20 each but is considering Equipment would have to be purchased for $35,000 and will last for 6 years, at which time it will have a disposal value of customers will find out about the special order, and X Company's regular sales will 600 units. As a result of these lost sales, X Company's profits would fall by them instead. Variable costs of making would be $4.50 per unit; additional annual fixed costs would be $6,000 $8,000. Assuming a discount rate of 4%, what is the net present value of making the part instead of continuing to buy it? 9. AO $59,46 BO 69,574 CO $81,402 DO $5,240 EO $111,431 FO $130,375 py curenily makes a part and te considering bauytng is from a company that has offered to sugely it for per unit. This year, per-unit production costs to produce 50,000 units were: 83,000, (6,46O Direet materials 93,b50 88.00 5.40 Direct labor Overhead Total 18. $180,000 of the total overhead costs were variable; $65,450 of the fixed overhend costs casmot be avoided even if x Company buys the part. If the company buys iP rodhuction next year is expected to Increase to 53,350 units. If X Company contimes to make the part Instend of buying it, the part, the resources that are used to make it cannot be used for anything else. it will save Questions 6, 7, and 8 refer to the following information At the end of the year, a company offered to buy 4,520 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $17.00 each. The following information that X Company made and sold to its regular customens during the year Cost of goods sold Period costs Per-Unit $7.94 2.78 Total $551,036 192,932 Total $10.72 $743,068 Fixed cont of goods sold for the year were $150,598, and fixed period costs were $99,936. Variable period costs include selling commissions equal to 2% of revenue. p Profit on the special order ie 6. AO $7,243 BO $9,053 CO S11,317 DO 14146 EO 17682 FO $22,103 Assume the following two changes for the special order: I1) variable cost of goods sold will decrease by S0.78 per commissions. What would be the effect of these two changes on the special order profit? unit, and 2) there will be no selling 8 pt. There is concern that regular wi 8. AO $4,747 BO 34 CO,418 DO S9,272 E 1,590 FO 14,87 &ptX Company currently buys 10,000 units of a component part each year from a supplier for $7.20 each but is considering Equipment would have to be purchased for $35,000 and will last for 6 years, at which time it will have a disposal value of customers will find out about the special order, and X Company's regular sales will 600 units. As a result of these lost sales, X Company's profits would fall by them instead. Variable costs of making would be $4.50 per unit; additional annual fixed costs would be $6,000 $8,000. Assuming a discount rate of 4%, what is the net present value of making the part instead of continuing to buy it? 9. AO $59,46 BO 69,574 CO $81,402 DO $5,240 EO $111,431 FO $130,375