These are practice questions based on questions on final exam. Please include worksheets, Excel spreadsheets, and explanations with your answers. Some questions contain more than one answer. Please provide all answers. .

3/23/2017 Assignment Print View [The following information applies to the questions displayed below.] Jupiter Corporation manufactures skateboards. Several weeks ago, the rm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboard follow. Direct material Direct labor: 0.25 hours at $9.00 Total manufacturing overhead: 0.5 hours at $20 $ 8.20 2.25 10.00 $20.45 Total Additional data: The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. Venus requires a modication of the design that will allow a $2.10 reduction in direct-material cost. Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discarded once the special order is completed. Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. This gure is based, in part, on budgeted yearly xed overhead of $750,000 and planned production activity of 60,000 machine hours (5,000 per month). Jupiter will allocate $1,800 of existing xed administrative costs to the order as \"... part of the cost of doing business.\" 8. Award: 3.16 points 3. What options might Jupiter consider if management truly wanted to do business with Venus in hopes of building a longterm relationship with the firm? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Completely ignore the additional setup costs and the new device costs, as these are fixed in nature Working overtime Outsourcing some units Acquiring more machine capacity http://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=8.&postSubmissionView=13252705367881583,13252705367881585&wid=132... 1/2 3/23/2017 Assignment Print View Sacrificing some current business in the hope that a longterm relationship with Venus can be established and proves to be profitable References Check All That Apply Learning Objective: 1404 Identify relevant costs and benefits, giving proper treatment to sunk costs, opportunity costs, and unit costs. Difficulty: 2 Medium Learning Objective: 1405 Prepare analyses of various special decisions, properly identifying the relevant costs and benefits. http://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=8.&postSubmissionView=13252705367881583,13252705367881585&wid=132... 2/2