Schickel Inc. regularly uses material B390 and currently has in stock 459 liters of the material for which it paid $2,621 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.24 per liter. New stocks of the material can be purchased on the open market for $5.84 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 600 liters of the material to be used in a job for a customer. The relevant cost of the 600 liters of material B390 is: Multiple Choice $5,840 $3,144 0 $3,229 O $3,504 Lusk Corporation produces and sells 15,900 units of Product X each month. The selling price of Product X is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $71,000 of the $109,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple Choice ($57,400) $13,600 O $51,600 ($51,600) The SP Corporation makes 37,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $9.60 $8.60 $3.50 $4.45 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $24.25. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be: Multiple Choice ($70,300) $223,850 94,350 $164,650