Which of the following is not a reasonable way to deal with excess supply? A Use available capacity to make the product with the highest CM per unit of capacity B. Increase advertising C. Reduce prices D. Find additional special orders at a discounted price E. All of the above are reasonable General Mattress (GM) Com makes mattresses. The regular price per mattress is $800. At current production volume, the unit cost (total cost per unit) is $700 per unit, which contains of $100 fixed overhead national hotel chain has offered to buy 2,000 mattresses from GM at a discounted price of $650. This is a one-time special order (i.e., a short-term decision), and GM has enough space capacity to accommodate this order without cutting back on its regular sales. If GM accepts this special order, GM's profit will: A. decrease by $300,000 B. decrease by $100,000 C. no change D. increase by $100,000 E. increase by $300,000 Which of the following is not a reasonable way to deal with excess demand? A. Maximize the contribution margin per unit of capacity B. Outsource additional production to an outside supplier, who currently has unused capacity C. Increases prices D. Increase advertising E. All of the above are reasonable Beta Company makes component X in-house at a cost of $32 per unit, which consists of $12 fixed overhead unit, $4 direct labor per unit, $14 direct materials per unit, and $2 variable overhead per unit. The company needs 1,000 units of X per month. An outside supplier has offered to sell component X to Beta at $12 per unit. How much will Beta's profit change in the short term if it decides to purchase X from the outside supplier? A. Decrease by $20,000 per month B. Decrease by $8,000 per month C. No change D. Increase by $8,000 per month E. Increase by $20,000 per month Gamma Company budgeted to use 2 pounds of materials per unit at a budgeted cost of $100 per pound. Budgeted production and sales volume was 5,000 units. Actual production and sales volume was 4,000 units, and the company used a total of 8, 080 pounds of materials at an actual cost of $102 per pound. The input price and input quantity variances are: After implementing activity-based costing to estimate customer-level technical-support costs, ABC Company found that customer X is unprofitable. What are reasonable ways to deal with this customer? A. Charge the customer a higher price per unit (assume that you can charge different customers different prices for the same product or service) B. Limit the number of free technical-support calls per customer C. If nothing else works, "fire" the customer D. A and B only E. A, B, and C