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MC Qu. 73 Lattimer Company had the following results... 4 Lattimer Company had the following results of operations for the past year: 1 points Sales (15,000 units at $12.15) Variable manufacturing costs Fixed manufacturing costs Selling and administrative expenses (all fixed) Operating income $ 182,250 $99,750 23,250 38,250 (161,250) $ 21,000 eBook References A foreign company whose sales will not affect Lattimer's market offers to buy 5,300 units at $7.80 per unit. In addition to existing costs, selling these units would add a $0.28 selling cost for export fees. Lattimer's annual production capacity is 25.000 units. If Lattimer accepts this additional business, the special order will yield a: Multiple Choice $8.904 loss $2,120 loss O $3,604 loss $6,095 profit $4,611 profit 5 MC Qu. 47 Chang Industries has... Chang Industries has 3,000 defective units of product that have already cost $15.00 each to produce. A salvage company will purchase the defective units as they are for $6.00 each. Chang's production manager reports that the defects can be corrected for $5.00 per unit, enabling them to be sold at their regular market price of $23.00. The incremental income or loss on reworking the units is: points Multiple Choice eBook References $36,000 income. $51,000 income. O $54,000 income. $36.000 loss. $15,000 loss. MC Qu. 77 Walters manufactures a specialty food... 6 Walters manufactures a specialty food product that can currently be sold for $22.30 per unit and has 20,300 units on hand. Alternatively, it can be further processed at a cost of $12,300 and converted into 12,300 units of Deluxe and 6,300 units of Super. The selling price of Deluxe and Super are $30.30 and $20.30, respectively. The incremental net income of processing further would be: 1 points Multiple Choice eBook $12,300. References $44,300 $18,300 $35,590 $47,890 7 MC Qu. 70 Ahngram Corp. has... Ahngram Corp. has 1,000 defective units of a product that cost $3.50 per unit in direct costs and $7.00 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.50 per unit or reworked at an additional cost of $3.00 and sold at full price of $13.50. The incremental net income (los) from the choice of reworking the units would be: 1 points Multiple Choice eBook O $0. References $4,500 $10,500. O $3,000 O $3,000)

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