Question 11 3 Points Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for $21.20 each. Product A90's unit product cost is $16.20, determined as follows: Direct materials $6.10 Direct labor -4.20 Variable manufacturing overhead ----230 Fixed manufacturing overhead -3.60 Unit product cost -$16.20 Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $4.20 per unit and that would require an investment of $21,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be A) (516,200) B) $30,000 ($18,600) D $5,400 46 minutes remaining Lost saved 11:47:29 AM 80 55 F6 59 $5,400 X Question 12 3 Points Kahn Corporation (a multi-product company) produces and sells 8,000 units of Product X each year. Each unit of Product X sells for $10 and has a contribution margin of $6. If Product X is discontinued, $50,000 of the $60,000 in annual fixed costs charged to Product X could be eliminated. The annual financial advantage (disadvantage) for the company of eliminating this product should be: (A) ($2,000) B $12,000 $2,000 D ($12,000)