Sport company produces a ball bearing used in bantam cars. Each ball bearing sells for 45 and the company sells approximately 500,000 ball bearings each year. Unit cost data for 2019 given below: Fixed Variable Fixed Variable Direct Material 12 Facotry Overhead 8 Direct Labor 10 Distribution cost 2 4 4 Sport has received an offer from a foreign buyer to purchase 50,000 ball bearings. Domestic sales would not be affected by this transaction. The offer price is 37. If the offer is accepted, variable distribution costs will increase 2 per ball bearings for shipping, insurance and import duties. The company has idle capacity to produce the offer. Required: a. What is the relevant unit cost to this special order? b. Determine the increase in operating income as a result this special order? Alonzo Company uses a joint process to produce Products A, B and C. Joint production costs for 2019 were 200,000 and are allocated using relative-sales value at split-off method. Each product may be sold at its split off point or processed further. Additional processing costs are entirely variable. Relevant data are given below: Product A B Sales Value at Split off 100.000 200,000 40,000 340,000 Additional Processing cost 40,000 50,000 60,000 150,000 Final Sales Value 200,000 240,000 80,000 520,000 Required: a. To maximize the profit, which product or products should be sold at split-off point and which product or products should be processed further? b. If the alternative were either to sell all at split off point or to process further all the products, which alternative would you recommend