ing overhead Fixed manufacturing overhead 0.50 Variable selling expenses 4.25 Fixed selling and administrative expenses 1.50 2.00 ctri The normal selling price is $15 per bank. The production capacity for Savings, Inc. is 10,000 banks per month. An order has been received from a potential customer overseas for 2,000 banks at a price of $12.00 per bank. This order would not affect regular sales. How much will monthly profits change if the order is accepted? ENVY Case 2 USE YOUR SMARTPHONE FOR The Big Wheels Company currently purchases bicycle seats for its bikes for $30 each. The company has excess capacity and is considering the possibility of making the component. The Cost Accounting . Review Department estimates that the following costs would be incurred to make each unit of the component: . Video Direct materials . Featu bas ting to Direct labor OW . Spe . Supp gaiabigvbe to 60 Variable overhead Fixed overhead (depreciation, rent, insurance) SCAN Total manufacturing cost $33 Additionally, if Big Wheels decides to make the component, additional foremen, custodial personnel, and material handlers are required at a total cost of $120,000 per year. Assume the company uses 40,000 bike seats annually. Part 1 - Should Big Wheels make or buy the bicycle seats it needs? Why? Part 2 - At what volume of bike seats would the company change its decision? Case 3 EduToys can sell a maximum of 10,000 Mr. Spells and 25,000 Etch a Sketches. Mr. Spell has a contribution margin of $4.20 per unit and requires 3 machine hours to produce. Etch a Sketch has a contribution margin of $6.60 per unit and requires 6 machine hours to produce. EduToys currently has 54,000 machine hours available. How many Mr. Spells and Etch-a-Sketches should EduToys produce to maximize profits for the company