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The Az Company manufactures kitchen utensils. The company is currently producing capacity. The BV Company has approached AZ with an offer to buy average utensils at each. Az sells its utensils wholesale for $0.85 each; the BV's cost per is of S0.12 fixed If AZ were to accept what would be the increase in Az's operating profits? $400 $800. $1,600, $2,000. 23. A flexible budget: a. updated with actual costs as they occur during the period d. is updated to reflect the actual of activity during the period. contains using a computer application. 24. Which of the only variable production costs. organization following costs are irrelevant for a special order that will allow an b. materials of its present idle capacity? C. Indirect materials Variable d. Unavoidable fixed overhead 25. The payback method a. how quickly investment dollars may be recovered. b, the cash flow an investment. C. the economic life of an investment. 26. d. the project profitability of an investment. The of Austin is considering dropping product R97C. Data from the company's accounting system appear Variable Fixed manufacturing $130,000 $56,000 Fixed expenses selling and administrative expenses....... S49,000 In the company's accounting S35,000 allocated to products. system fixed expenses of the company are fully manufacturing Further investigation has revealed that $34,000 fixed avoidable expenses and fixed selling and administrative expenses company's if product R97C is What would be effect on the b. overall net operating income if product R97C were dropped? Overall net operating income would increase by $20,000. Overall net would by c. Overall net operating income would decrease by $20,000. d. Overall net operating income would decrease by $10,000. 12