Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018: Units of L800 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity for L800 (units) Total conversion costs Conversion costs per unit of capacity 2017 30,000 $400 91,000 $31 37.500 $450,000 $20 2018 34.500 $380 89,000 $32 36,000 $432,000 $20 What is the revenue effect of the growth component? ..... O A. $423,150 F B. $1,800,000 U OC. $423,150 U OD. $1,800,000 F In 2017, Commodity Inc., processor of whole grain flour, had the capacity to produce 10,000,000 pounds of product at a conversion cost per pound of $0.90. The conversion cost per pound was $0.85 in 2016 (the previous year). The direct material cost per pound for both years was $0.09 per pound and in 2017, Commodity Inc. produced 9,200,000 pounds while actual production for the previous year was 8,400,000 pounds. What was the cost of unused capacity in 2017? O A. $1,360,000 O B. $1,440,000 OC. $720,000 OD. $680,000 Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: $500 160 70 Direct materials Direct manufacturing labor Variable manufacturing support Fixed manufacturing support Total manufacturing costs Markup (10% of total manufacturing costs) Estimated selling price 210 940 94 $1,034 If Ms. Leila wanted a long-term commitment, and not a one-time-special order, for supplying this product, calculate the most likely price to be quoted assuming the markup remains the same? ... O A. $730 OB. $940 O c. $660 OD. $1,034