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Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting system reports the following unit product cost for this product Direct materials Direct labor Manufacturing overhead Total cost Per Unit $ 18 12 10 $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced, The remainder of its overhead is fixed and unaffected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above for $39. The company can fulfill this order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incur additional direct materials cost per unit of $3. It would also have to buy a special tool for $500 that has no other use or resale value after the special order is completed. Assuming that accepting this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the special order? Multiple Choice $400 $(1,700) $900 $(300) Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Product A Product B Product C 700 600 800 $ 80 $ 65 $ 45 $ 35 $ 26 $ 20 2.5 3.0 1.25 The company has only 1,500 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice $30,000 Multiple Choice $30,000 $32,000 O $29,000 $31,000 Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Product A 700 $ 80 $ 35 2.5 Product B 600 $ 65 $ 26 3.0 Product C 800 $ 45 $ 20 1.25 The company has only 3,000 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice Multiple Choice $57,750 O $54,750 $59,750 $61,750 Assume a company has three products-A, B, and C-that emerge from a joint process. The selling prices and outputs for each product at the split-off point are as follows: Product A B Selling Price $ 33 per pound $ 29 per pound $ 24 per pound Output 14,000 pounds 18,000 pounds 19,000 pounds Each product can be processed further beyond the split-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Additional Product Processing Costs A $ 65,000 $ 70,000 $ 82,000 Selling Price $ 37 per pound $ 34 per pound $ 30 per pound B What is financial advantage (disadvantage) of further processing if the company decides to further process all three products? Multiple Choice O $43,000 $22,000 $11,000 O $31,000

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