Save Homework: Chapte... Question 5, E11-23 (simi. Part 15 HW Score: 83.33% de points O Points: 0 of 1 1. The Jersey Company manufactures stopers and sets them at 11 apartmanufacturing out is $7.00 a pair, and allocated fred manufacturing costi 52.25 port has enough de capacity able to accept a one-time-only special order of 10.000 pers of sippers $9.25 apr. Jersey will not incur any marketing cost of the special order What would the effect on pering income be the speciel order could be copied without affecting home In sot 122.500 increase (c) 570.000 incor (d) 502 500 Show your calculations 2. The Secret Company manufactures Part No. 498 for use in a production ine. The manufacturing cost per unit for 25.000 units of Part No. 400 is as follows: Gick to see the manufacturing com per unit) Readpan 1. The Joney Company manufacture opers and sell am 11 por Variable matching costs $700 a por, and allocated to manufacturing out 12.25 ans enough capacity to acceptation ordert 10.000 profpes at 9.2 a paltry without any marting com mart of the special or What would the effect on operating income bene pecial order could be accepted without affecting nome 50. 122.500 570.000 2.500 ore Show your con Behin by electing the labels to calculate the concerte income and there in the supporting Calcio is special order Electric 00 Data table sey will not incur any marketing X ping normal sales: (a) 80, (b) 1 Is to Te Direct materials $ 5 Variable direct manufacturing labor 23 Variable manufacturing overhead 16 Fixed manufacturing overhead allocated 18 Total manufacturing cost per unit $ 62 The Cushion Company has offered to sell 25,000 units of Part No. 498 to Sacramento for $58 per unit. Sacramento will make the decision to buy the part from Cushion if there is an overall savings of at least $30,000 for Sacramento. If Sacramento accepts Cushion's offer, $10 per unit of the fixed overhead allocated would be eliminated. Furthermore, Sacramento has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575. Print Done sey will not Cui Xing normal sales Requirement For Sacramento to achieve an overall savings of $30,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $100,000, (b) $130,000, (c) $180,000 or (d) $200,000? Show your calculations. What other factors might Sacramento consider before outsourcing to Cushion? Print Done would be eliminated. Furthermore, Sacramento has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575
