Another Scenario Screened topsoil Garden mix blended soil Sales price per cubic yard $20.00 $29.00 Direct...

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Another Scenario Screened topsoil Garden mix blended soil Sales price per cubic yard $20.00 $29.00 Direct material 5.00 10.00 Direct labor 5.00 8.00 Variable overhead 1.00 1.60 Fixed overhead per cubic yard 1.10 1.20 Contribution margin per cubic yard $7.90 $8.20 Question: Assume that total fixed overhead is $13,200 before processing the soil further. Should the soil be processed further if 1) processing further will increase total fixed cost without affecting production volume? 2) total fixed cost stays constant whether the product is processed further or not? Show your calculations. 15 Another Scenario Screened topsoil Garden mix blended soil Sales price per cubic yard $20.00 $29.00 Direct material 5.00 10.00 Direct labor 5.00 8.00 Variable overhead 1.00 1.60 Fixed overhead per cubic yard 1.10 1.20 Contribution margin per cubic yard $7.90 $8.20 Question: Assume that total fixed overhead is $13,200 before processing the soil further. Should the soil be processed further if 1) processing further will increase total fixed cost without affecting production volume? 2) total fixed cost stays constant whether the product is processed further or not? Show your calculations. 15