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10. One-time-only special orders should only be accepted if a. b. c. d. incremental revenues exceed incremental costs differential revenues exceed variable costs incremental revenues exceed fixed costs total revenues exceed total costs Use the following information to answer questions 11 Mod Clothiers makes women's clothes. It costs $28,000 to produce 5,000 pairs of polka-dot polyester parn ve been unable to sell pants at their usual price of $50.00. The company is evatig $20,000. soo hepants as i" for $15,000or two alternatives. They could or they could modify the pants at a cost of $3,000 and sell them for a total of the panr 11. The change in would be a(an) net income resulting from modifying the pants and then selling as opposed to selling "as is all conditions remained the same except the cost to modify the pants ($3,000). At what cost to 12. Assume modify each pair of pa nts would Mod Clothiers be indifferent between the two altenatives? Consider the following information for questions 13 and 14 below. Xebex Company is considering whether to make or buy a component used in the production of Fax Machines. The annual cost of producing the 100,000 components used by the company is as follows: Direct variable manufacturing costs Direct fixed manufacturing costs Allocated overhead $300,000 $100,000 S 50,000 If Xebex were to discontinue production of the component, direct fixed manufacturing costs would be reduced by 80%. 13. Xebex should buy the 100,000 components if the cost of purchasing per unit is less than what amount? 4. What are the irrelevant costs in the decision

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