Question: Answer the following questions using the information below. Konrade's Engine Co. currently manufactures part TE456. Monthly production costs for 1,000 units are: Direct materials $40,000

Answer the following questions using the information below. Konrade's Engine Co. currently manufactures part TE456. Monthly production costs for 1,000 units are: Direct materials $40,000 Direct labor 10,000 Variable overhead costs 30.000 Fixed overhead costs 20.000 Total costs $100.000 It is estimated that 20% of the fixed overhead costs assigned to TE456 will no longer be incurred, if the company purchases TE456 from the outside supplier. Konrade's Engine Company now has the option of purchasing the part from an outside supplier at 589 per unit. If Konrade's Engine Company accepts the offer from the outside supplier, what is the monthly total avoidable costs (.e. costs that will no longer be incurred)? A $84.000 O B.596,000 o C.$100.000 O D.580.000 Click Save and Submit to save and submit. Click Save All Answers to save all anstrers. Type here to search O + If Konrade's Engine Company purchases 1,000 TE456 parts from the outside supplier per month, how will its monthly operating income change? O A.Increase by $5,000 O B. Decrease by $7,000 O C Increase by 57,000 D. Decrease by $5,000 QUESTION 53 What is the maximum price per unit that Konrade's Engine Company should be willing to pay the outside supplier? O A.580 8.584 O C.$100 O D.596 QUESTION 54 Answer the following questions using the information below: Schlickau Company manufactures basketball backboards. The following information pertains to the company's normal operations per month: Output units 15,000 boards Click Save and Submit to save and submit. Click Save Al berto e alla Type here to search
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