Question & refers to the following: Wintertime Con wintertime Company produces the handles which are used in the production of the Wintertime's costs to produce 60.000 handles annually are as follows: in the production of their snow shovels. Direct materials Direct labor Variable overhead Fixed overhead TOTAL $30,000 55,000 25.000 40.000 $150.000 An outside supplier has offered to sell Wintertime similar handles for $2.25 per handle. purchased from the outs rom the outside supplier 25.000 of annual fixed factory overhead will continue to be me ar handles for $2.25 per handle. If the handles are and will be allocated to other products. The facilities now being used to make the man to another company for $25.000 per year if the handles are purchased from the outside SPP now being used to make the handles could be rented If Wintertime chooses to buy the handles from the outside supp Chooses to buy the handles from the outside supplier, then the change in annual net due to accepting the offer is a: a. Net income will not change b. $25,000 increase. c. $15,000 increase. d. $10,000 decrease. $2.15 Delta Company produces a single product. The cost of producing and selling a single the company's normal activity level of 22,000 units per year is: Direct materials Direct labor 1.20 Variable overhead Fixed overhead Variable selling and administrative expense Fixed selling and administrative expense .75 The normal selling price is $15 per unit. The company's capacity is 30,000 units per year. An order has been received from a mail-order house for 8,000 units at a special price of $9 per unit. This order would not disturb regular sales. If the order is accepted, by how much will annual profits be increased or decreased? (The order will not change the company's total fixed costs.) a. $35,200 increase b. $38,400 increase c. $27,600 increase d. $48,000 decrease 10. Refer to the data in #9. Assume the company has 500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost figure is relevant for establishing a minimum selling price for these units? a. $4.60 b. $1.25 c. $.75 d. none of the costs are relevant