The Mold Division of SPKY makes and sells only one product. Annual data on the Mold Division's single product follow: Unit selling price Unit variable cost Total fixed costs Average operating assets Minimum required rate of return $50 $30 $200,000 $750,000 12% Suppose the manager of the Mold Division desires an annual residual income of $45,000. In order to achieve this, the Mold Division should sell how many units per year? 14,500. 16,750. 18,250. 19,500. QUESTION 29 SPKY has the capacity to produce 15,000 units per month while incurring the following costs: Direct materials Direct labour Variable manufacturing overhead Variable selling expense Fixed manufacturing overhead $3.00 $4.00 $1.50 $0.50 $1.00 A special order has been received from a customer who wants to pay a reduced price of $11 per unit. There would be no selling expense in connection with this order and no other expenses or sales will be affected. If the order is for 5,000 units, the impact on operating income would be a(n): increase in operating income of $7,500. increase in operating income of $12,500. decrease in operating income of $12,500. decrease in operating income of $7,500. SPI-K is preparing its Manufacturing Overhead Budget for the third quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation. Variable factory overhead is paid in the month incurred) If the budgeted cash disbursements for factory overhead for September are $80,000, then the budgeted production in units for September must be? 6,200. 6,500. 7,000. 7,400