There are answers at the bottom of the second page. I just need the work shown to see how you get to those answers

5. Mckinney Cycle Accesories had the following operating results ast year related to the prodtuction and sale of 16,000 motorcycle hclmets: Sales Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs..28,000 Fixed selling and administrative costs $1,920,000 880,000 272,000 224,000 McKinney expects the same operating results this ycar. The Penny Pincher Motorcycle Club has offered to buy 1,500 hclmets this year, but only if it can buy them for S60 each. McKinney has sufficient idle capacity to fill this order. This special order would not change McKinney's cost structure or affect regular sales. Variable selling and administrative costs will be incurred at the normal rate per unit on this order. If McKinney accepts the order, how much will its profits increase or decrease this year? A. B. C. D. E. 4,500 decrcasc S 7,500 increase $18,000 decrease $90,000 decrease None of the above 6. OMIT Twinkie Trivia, Inc. manufactures and sells two products: the 50s Trivia Game and the 60s Trivia Gamc. Last quarter's operating results for the products are as follows 7. S6,600 3,000 $3,600 $11,000 Salcs Variable costs Contribution margin 6,600 Fixed costs Net income (loss) S 3,850 $ (600) Forty percent of the fixed costs shown for the 60s Trivia Game would have been avoided if the product had not been produced and sold. If the 60s Trivia Game had been discontinued before the beginning of last quarter, net income for Twinkie would have been: C. $1,920 less D. $3,600 less A. 600 greater $1,080 greater 17 Jewelry by Morley is considering the production and sale of three new products. The company has 1,800 available labor bours cach month. Per-unit data for the three product provided below and expected monthly demand in units are Selling price Variable expenses Labor hours required 1.2 hrs Monthly demand (units) 500 $3.00 S1.20 $5.00 S3.40 2 hrs. 600 $16.00 $10.00 S hrs. 240 How many units of each product should Morley produce in order to maximize its income? . 500 0 240 500 300 120 0 300 240 D. 1,500 0 0 9. Ellis Television makes and sells portable televisions. Each television regularly sell for $250. The following cost data per television are based on full capacity of 10,000 televisions produced and sold cach period. Direct labor Factory overhead (70% variable) Selling expenses (60%variable) $40 $25 A customer in Scotland has offered Ellis $200 each for 2,000 televisions. The only selling costs that would be ncurrod on this special order would be $6 per television for shipping. Ellis currently is selling 9,000 televisions through regular channels cach period; acceptance of the order thus would require giving up 1,000 units of regular sales. What effect would acceptance of the special order have on Ellis Television's operating income? S7,000 increase A. B. $52,000 increase C. $11,000 decrease D. $15,000 decrease 10. Mcacham Company makes a subcomponent of its major product. Annual production of 20,000 subcomponents results in the following per-unit costs Direct matcrials Direct labor Variable overhead Fixed overhead $10.00 9.00 7.50 S 5.00 Mcacham has received an offer from an outside supplier that is willing to provide 20,000 units of the subcomponent cach year at a price of $28. The facilities being used to make the subcomponent could be rented to another company for S75,000 per year if Meacham were to purchase the subcomponent from the outside supplier If Meacham decides to purchase the subcomponent, what will be the effect on the company's operating income? $45,000 incrcase A. B. $70,000 increase C. $30,000 decrease D. $70,000 decrease Answers: 10. A 4. D 5. A 6. OMIT 7. C 8. A 9. D 2