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Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 96,000 units per year is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1.90 $4.00 $0.70 $4.95 2.00 $3.00 The normal selling price is $22.00 per unit. The company's capacity is 129,600 units per year. An order has been received from a mail order house for 2,800 units at a special price of $19.00 per unit. This order would not affect regular sales or the company's total fixed costs. Required 1. What is the financial advantage (disadvantage) of accepting the special order? 2. As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below. Required 1Required 2 What is the financial advantage (disadvantage) of accepting the special order? Complete this question by entering your answers in the tabs below. Required 1Required 2 As a separate matter from the special order, assume the company's inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? (Round your answer to 2 decimal places.) Show less Relevant cost per unit Required 1 Required 2 Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Home Meals On House- Total Nursing Wheels keeping $929,000 263,000 410,000 $ 256, 000 152,000 104,000 466,000 112,000 202,000 463,000 151,000 208,000 Depreciation Liability insurance Program administrators' salaries General administrative overhead* 40,700 7,700 38,400 82,000 413,500 122,500 168,800 69,300 44,200 114,200 185,800 8,400 20,900 40,600 52,600 20,200 15,600 35,200 51,200 122,200 39,200 $(18,200) Total fixed expenses Net operating income (loss) $ 49,500 $ 28,500 Allocated on the basis of program revenues The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $49,500 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 1B> Complete this question by entering your answers in the tabs below. Req 1A Should the Housekeeping program be discontinued? OYes Req 1B Req 2A Req 2B ONo Req 1A Req 2A > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes ONo (Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major processor of beef and other meat products. The company has a large amount of T-bone steak on hand, and it is trying to decide whether to sell the T-bone steaks as they are initially cut or to process them further into filet mignon and the New York cut If the T-bone steaks are sold as initially cut, the company figures that a 1-pound T-bone steak would yield the following profit: Selling price ($2.40 per pound) Less joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product Profit per pound $ 2.40 1.55 $ 0.85 If the company were to further process the T-bone steaks, then cutting one side of a T-bone steak provides the filet mignon and cutting the other side provides the New York cut. One 16-ounce T-bone steak cut in this way will yield one 6-ounce filet mignon and one 8-ounce New York cut; the remaining ounces are waste. It costs $0.18 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $4.40 per pound, and the New York cut can be sold for $3.80 per pound. Required: 1. What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks? 2. Would you recommend that the T-bone steaks be sold as initially cut or processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would you recommend that the T-bone steaks be sold as initially cut or processed further? OT-bone steaks should be processed further. OT-bone steaks should be sold as initially cut. Required 1 Required 2