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Question 27 (7 points) Listen Justin Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: 1) Income would increase by $40,000 O2) Income would increase by $140,000 3) Income would increase by $8,000. 4) Income would decrease by $8,000. Question 28 (7 points) Listen > Beeline is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Beeline would sell it for $52. The cost to assemble the product is estimated at $17 per unit and the company believes the market would support a price of $68 on the assembled unit. Should Beeline sell their product before or after assembly? 1) Process further, the company will be better off by $23 per unit. O2) Sell before assembly, the company will be better off by $16 per unit. 3) Process further, the company will be better off by $11 per unit. 4) Sell before assembly, the company will be better off by $1 per unit

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