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1. If West Star received a special order for 500 computers at a price of $275, what will be the impact on the company's profit

1. If West Star received a special order for 500 computers at a price of $275, what will be the impact on the company's profit if the order is accepted? (Assume that other variables do not change).

  1. Direct materials$48
  2. Direct labor$90
  3. Variable manufacturing overhead$62
  4. Direct fixed manufacturing overhead$40
  5. Indirect fixed manufacturing overhead$40



2. Newell Company presently has three product lines: paper, stamps, and computer ribbons The company is considering discontinuing the stamp line. Given the following information, if Newel discontinues the stamp line, what would the net income be?

  1. Sales revenue$48,000
  2. Variable costs($30,000)
  3. Direct fixed costs($12,000)
  4. Indirect fixed costs($9,000) 
  5. Net Loss($3,000)

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