Sheridan, Inc. can produce 100 units of a component part with the following costs: Direct Materials $29700 Direct Labour 12400 Variable Overhead 32300 Fixed Overhead 23000 If Sheridan Inc. can purchase the component externally for $88900 and only $7500 of the fixed costs can be avoided, what is the correct "make-or-buy decision"? O Make and save $1000. Make and save $7000. Buy and save $14500. O Buy and save $1000. Bonita Dairy has four product lines: sour cream, ice cream, yogurt, and butter. The total costs of producing the milk base for the products is $45900 which has been allocated based on litres of milk base used by each product. Results of July follow: Sour Cream Ice Cream Yogurt Butter Total Units sold 1680 700 530 5000 7910 Revenue $6800 $14700 $12300 $25200 $59000 Variable departmental costs 3700 9700 6700 11800 31900 Fixed costs 4500 1000 2000 6500 14000 Net income (loss) ($1400) $4000 $3600 $6900 $13100 How much are total joint costs of the products? O $31900 O $13100 O $14000 O $45900 Which of the following statements about incremental analysis is true? It cannot be used if more than two alternatives are available. O It considers only cost factors, not revenue. O Its focus is on the past activities. It only considers factors that are different for each alternative, and only those factors that will occur in the future. It costs Marigold Fields $13 of variable costs and $5 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 3060 units at $19 each. Marigold has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? decrease $4896 increase $4896 O increase $18360 increase $58140