Question 13 1 pts The Wood Division of Fir Products, Inc. manufactures wood moldings and sells them externally for $100. Its variable cost is $40 per unit, and its fixed cost per unit is $14. Fir's president wants the Wood Division to transfer 5,000 units to another division Assuming the Wood Division has available capacity, the minimum transfer price it should acceptis $100 @ $54 $60 $40 Question 14 1 pts Square Manufacturing incurs the following costs to make 5,000 units of a sub-assembly partincluded in its finished product Direct materials $10,000 Direct labor 20,000 Variable overhead 25,000 Fixed overhead 60,000 The fixed overhead consists mainly of depreciation and will not be reduced if the componentis purchased from an outside supplier. An outside supplier offers to make 5,000 units for $14 per unit If Square buys the part from an outside supplier, it could use factory equipment to make another product which is estimated to have a contribution margin of $12,000. What should Square do? Make, net income will be $3,000 greater. Buy, net income will be $12.000 greater Make, net incorne will be $15,000 greater. Make, net income will be $12.000 greater. Sharpe Company has 3 Manufacturing divisions. It allocates corporate fixed costs based on the number of units sold by each division Last year the Basic Division reported the following Basic Division Sales revenue $100,000 Variable costs 73,000 Directfixed costs 28,000 Allocated fixed costs 2.000 Net income (loss) ($10,000) If Sharpe eliminates (discontinues) the Basic Division: o Sharpe's net income will decrease $18,000. Sharpe's net income will increase $8.000. o Sharpe's net income will increase $10,000. O Sharpe's net income will increase $1.000