Q Inc. makes two products (A and B) in a single factory. Per unit costs and other data are as follows: Monthly sales volume Product A Product B Monthly production capacity 1,500 1,000 Sales price per unit 2,000 2,500 $ Variable direct materials per unit 60 $ 70 $ 13 $ 16 Variable direct labor per unit $ 15 $ 20 Variable manufacturing overhead per unit $ 7 $ 3 Variable selling costs per unit $ 6 $ 7 Common fixed costs (allocated) per unit $ 15 $ 5 5 L12-2 (1 point) Compute the financial advantage/(disadvantage) of adding a new Product C, with unit selling price of $50, variable costs of $35 per unit, 5 and no Incremental, traceable fixed costs. Expected sales for Product C is 300 units. Adding Product C would decrease Product A sales by 20%. Provide 7 one NONFINANCIAL reason why the Company should NOT add Product C. 8 9 0 1 22 23 24 25 26 L012-3 (1 point) Compute the financial advantage/(disadvantage) of outsourcing production of Product B. An outside supplier would charge the 27 Company $45 per unit. Provide one NONFINANCIAL reason why the Company should NOT outsource Product B. 28 29 30 31 L012-3 (1 point) Compute the financial advantage/disadvantage) of outsourcing production of Product B. An outside supplier would charge the Company $45 per unit. Provide one NON FINANCIAL reason why the Company should NOT outsource Product B. L012-4 (1 point) Compute the financial advantage/disadvantage of accepting a special order from a new customer for 700 units of Product A. This customer is willing to pay $75 per unit. There would be no variable selling costs for this order, and no effect on the Company's total aount of fixed costs except for additonal, traceable fixed costs of $3,000