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Question 1 1 pts Stephen's Shoes makes laces for their shoes. The following are the costs: DM $.10, DL $.20, MOH $.30 for a total
Question 1 1 pts Stephen's Shoes makes laces for their shoes. The following are the costs: DM $.10, DL $.20, MOH $.30 for a total of $.60 per pair of laces. Gray Company has offered to sell Stephen laces for $.40 per pair. Stephen uses 10,000 pairs in a month. The fixed MOH is $2,400 at a level of production of 10,000 pairs, and it will not change. If Stephen buys the laces, how much better or worse off will they be? (use a - for negative numbers and just enter for positive) Question 2 1 pts Reggies sells office chairs to their regular customers for $200. The chairs cost is as follows: DM $50 per chair, DL $25 per chair, Var MOH $25 per chair, and Fix MOH $40 per chair. They normally sell 5,000 chairs in a month, and they have sufficient capacity to make and sell another 2,000. Gina, who is not a regular customer, talks to Reggie about buying 1,000 chairs but at a price of only $125 per chair. How much would operating income increase or decrease (-) if Reggie accepted the special order (assuming existing sales were unaffected)
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