having issues w/ 31

Market Desired Total assets Variable cost per unit 500,000 $24.00 12% $12,500,000 $17.00 $3,000,000 Units operating profit total l assets Fixed cost per year unit With the current cost structure, Origami cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs CANNOT be reduced, how much will the target variable costs per year be? A) $12,500,000 B) $2,500,000 C) $7,500,000 D) $8,000,000 30) Lowwater Sailmakers manufactures sails for sailboats. The company bas the.capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production: Sales- 3.000, 000 Sale price per unit Variable costs per unit $150 Manufacturi Marketing and administrative 25 Total fixed costs: Manufacturing Marketing and administrative $640,000 $280,000 If a special sales order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special sales order will require variable manufacturing costs and variable marketing and administrative costs.) A) Operating income increases $190,000. C) Operating income increases $225,000. B) Operating income decreases $125,000. D) Operating income decreases $5,000 31) Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production: $150 Sale price per unit Variable costs per unit: 0 Manufacturing Marketing and administrative 25 Total fixed costs: Manufacturing Marketing and administrative $640,000 $280,000 If a special sales order is accepted for 3,000 sails at a price of $75 per unit, fixed costs remain unchanged, and there are no additional variable marketing and administrative costs for this order, what is the change in operating income? A) Operating income decreases $5,000. C) Operating income increases $35,000. B) Operating income increases $60,000. D) Operating income decreases $36,000