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  3. 4. able company's unit manufacturing cost is: vari

4. Able Company's unit manufacturing cost is: Variable costs $50 $25 Fixed costs A special...

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4. Able Company's unit manufacturing cost is: Variable costs $50 $25 Fixed costs A special order for 2,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit Closs) will be a) $(46,000). b) $(40,000). c) $6,000. d) $10,000 5. Tex's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct materials Direct labor 25,000 e overhead Fixed overhead 30,000 If Tex's Manufacturin g Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a) Buy and save $5,000. b) Make and save $5,000. c) Make and save $15,000. d) Buy and save $15,000. 6. Marcus Company gathered the following data about the three products that it produces: Estimated Additional Processing Costs Estimated Sales if Processed Further Product Present sales value $12,000 14,000 11,000 $8,000 5,000 3,000 $21,000 18,000 16,000 Which of the products should not be processed further? a) Product A b) Product B c) Product C d) Products A and C

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