Use the following to answer question 22: Flering Moscow Nighs curenty follows: y manufactures a wicket as its main product. The costs per unit are as Direct materials and direct labor Variable overhead Fixed overhead Total $33 15 24 $72 22. Fleeting Moscow Nights Inc has contacted Old Prof Mullen with an offer to sell him 5,000 bottles of premium KGB vodka for $54 each. If that Sly Old Prof makes his own KGB vodka, variable costs (DM and DL-S33 and VOH-$15). Fixed costs are $24 per unit; however, $15 per unit is unavoidable. Should the Old Prof make or buy the vodka? A) Buy; savings $45,000 B) Buy; savings $15,000 C) Make; savings $30,000 D) Make; savings $15,000 are $48 per unit 23. Buyer Beware Toy Company is unsure of whether to sell its product assembled or unassem The unit cost of the unassembled product is $30 and Buyer Beware Toy would sell it cu or S65. The cost to assemble the product is estimated at $21 per unit and the company believes the market would support a new price of S85 on the assembled unit. What decision should be made about whether to sell or process further? A) Sell before assembly, the company will be better off by SI per unit. B) Sell before assembly, the company will be better off by $20 per unit. C) Process further, the company will be better off by $29 per unit. D) Process further, the company will be better off by $14 per unit. 24. Meow Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $80 and Meow Company would sell it currently for $180. The cost to assemble the product is estimated at $36 per unit and Meow believes the market would support a new price of $232 on the assembled unit. What om is the correct decision using the sell or process further decision rule? A) B) C) D) Sell before assembly, the company will be better off by $36 per unit. Sell before assembly, the company will be better off by $52 per unit. Process further, the company will be better off by $52 per unit. Process further, the company will be better off by $16 per unit. Page 6