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31. A company receives a one-time special order for 6,000 units of its product at $20 per unit. The company has excess capacity and it currently produces and sells the units at S30 each to its regular customers. Production costs are $18 per unit, which includes S16 of variable costs. To produce the special order, the company must incur additional fixed costs of $18,000. The company should A reject the special order because the units are being sold for $5 less than the regular price B. reject the special order because incremental costs exceed incremental revenues C. accept the special order because incremental revenues exceed incremental costs D. accept the special order because incremental costs exceed incremental revenues 32. A company manufactures a part for $75 per unit, including fixed costs of S20 per unit. The company can purchase the part from an outside source for 545 per unit, plus $5 per unit freight. The company's cost savings A. $25 if the company purchases the part B. $25 if the company manufactures the part C. $5 if the company purchases the part D. S5 if the company manufactures the part 33. A company produced 1,000 defective units. The units cost $12 each to produce. A salvage company will purchase the defective units as they are for $6 each. It would cost the company S16 per phone to rework the units. If the units are reworked, the company could sell them for $24 each. The incremental net income from reworking the units (over selling them as they are) is [Hint: Compute incremental income from each option and determine the difference.) A. $18,000 B. $6,000 C. $2,000 D. SO ACCT 2302 (6) Page 4 of 7 110917 Eum 3 (Chapter 21-24) - Form R

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