1)

The contribution margin on it's regular sales is ["relevant", "not relevant"] .

The cost of renting special equipment to fulfill the special order is ["relevant", "not relevant"] .

The rent paid on the factory building is ["relevant", "not relevant"]

2)

Pittsburgh Snow Removal Company prepares its operating budget using the following cost formula for its vehicle operating cost: $1,750 per month plus $484 per snow-day.

For the month of December, the company budgeted for 20 snow days. It turned out that there were only 15 snow-days in December. The company spent $10,500 on vehicle operating costs in December.

In evaluating vehicle manager's performance for December, the variance for vehicle operating costs would be:

a)$930 Favorable

b) $1,490 Favorable

c) $930 Unfavorable

d) $1,490 Unfavorable

3)

A local hardware store is unsure of whether to sell a product assembled or unassembled. The unit cost of the unassembled product is $24 and the hardware store would sell it for $52. The cost to assemble the product is $17 per unit and the manager believes customers would be willing to pay $68 for the assembled unit.

From a purely financial perspective, what should the hardware store do and why?

a)Sell before assembly, they would be any will be better off by $1 per unit.

b)Sell before assembly, they will be better off by $16 per unit

c)Sell assembled, they will be better off by $23 per unit

d)Sell assembled, they will be better off by $11 per unit