Nelson Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $130,000 Direct Labor 103,000 Variable Overhead 82,000 Fixed Overhead 62,000 If Nelson Inc. can purchase the component part externally for $345,000 and only $28,000 of the fixed costs can be avoided,

what is the correct make-or-buy decision?

a. Make and save $99,000

b. Buy and save $4,000

c. Make and save $2,000

d. Buy and save $32,000

A local science museum normally sells tickets to its museum for $5 each. Variable costs are $1.00 per visitor and fixed costs are $3,000. A local school group has approached the museum wishing to purchase 50 tickets at a reduced price of $2.00 each. If the school group's request is turned down, then the students will not visit the museum. Assuming the museum has sufficient capacity and that fixed costs remain unchanged, what is the change in net income if the special request was to be accepted?

D'Arien Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392,000 D'Arien has received a special order from an Albanian company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,600 for shipping. If D'Arien wants to break even on the order, what should the unit sales price be?

a. $8.20

b. $6.00

c. $11.60

d. $13.80