1. Your company can choose to accept or reject a special order for 50,000 units at a special price of $41 per unit. The normal price is $68 per unit. A unit of this product costs $39.10, consisting of direct materials per unit of $3.40, direct labor per unit of $11.90, variable overhead per unit of $17.00, and fixed overhead per unit of $6.80. If your company accepts the special order, what will happen to your company's profit if there is excess capacity?

2. Your company can choose to accept or reject a special order for 28,000 units. The normal price for this product is $25 per unit. A unit of this product costs $24.94, consisting of direct materials per unit of $7.53, direct labor per unit of $3.23, variable overhead per unit of $4.50, and fixed overhead per unit of $9.68. If your company wants to make a profit of $7,000.00, then what price should your company charge for this special order if there is excess capacity?

3. Your company can make or buy 65,000 units of a component. A supplier offers to sell this component to your company for $12 per unit. If you choose to make this component, it will cost you $19.00 per unit, consisting of direct materials per unit of $6.00, direct labor per unit of $7.00, variable overhead per unit of $5.00, and fixed overhead per unit of $1.00. If your company chooses to buy this component, how will profit be impacted?

4. Your company can make 85,000 units that cost $37 per unit and sell for $70 per unit or process them further for an additional cost of $29 per unit to sell them for $109 per unit. How would profit be impacted by processing this product further?

5. Your company can make 73,000 units that cost $87 per unit and sell for $101 per unit or avoid some of the processing to decrease cost by $50 per unit and sell the less processed units for $90 per unit. How would profit be impacted by not processing this product further?

6. Your company only has 82,000 available direct labor hours and 19,000 available machine hours. The table below shows the contribution margin per unit, number of units demanded per month, direct labor hours per unit, and machine hours per unit. Based on this information, how much of each product should your company manufacture each month?

7. Your company only has 59,000 available direct labor hours. The table below shows the selling price per unit, variable cost per unit, number of units demanded per month, and direct labor hours per unit. Based on this information, how much of each product should your company manufacture each month?

Product B $ $ 15 Product A 14 $ 26,000 1.90 0.70 Contribution Margin/Unit Monthly demand (units) Direct Labor Hours Machine Hours 7,000 1.20 1.30 $ $ Selling Price/Unit Variable Cost/Unit Monthly demand (units) Direct Labor Hours/Unit Product A 23.00 $ 13.80$ 48,000 0.60 Product B 13.00 $ 6.50 $ 34,000 1.10 Product C 18.00 9.00 4,000 0.80