Question 1 At Bargain Electronics, it costs $35 per unit ($18 variable and $17 fixed) to make an MP3 player that normally sells for $50. A foreign wholesaler offers to buy 3,250 units at $24 each. Bargain Electronics will incur special shipping costs of $3 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Costs-Variable manufacturing Shipping Net income The special order should b rejected accepted Click if you would like to or this question: Open Show Work Question 2 Manson Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 13,400 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase (Decrease) Make Buy Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost $ $ The decision should be t the part. buy make Click if you would like ork for this question: Open Show Work Question 3 Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $38 variable and $10 fixed. Because it has unused capacity, Pine Street is considering finishing the bookcases and selling them for $73. Variable finishing costs are expected to be an additional $6 per unit with no increase in fixed costs. Prepare an analysis on a per unit basis showing whether Pine Street should sell unfinished or finished bookcases. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sell Process Further Net Income Increase (Decrease) Sales price per unit Cost per unit Variable Fixed Total Net income per unit $ The bookcase should be sold without further processing should be processed further Click if you Open Show Work Question 4 Bryant Company has a factory machine with a book value of $93,100 and a remaining useful life of 5 years. It can be sold for $27,200. A new machine is available at a cost of $430,400. This machine will have a 5-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $592,600 to $505,500. Prepare an analysis showing whether the old machine should be retained or replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Retain Equipment Replace Equipment Net Income Increase (Decrease) Variable manufacturing costs $ $ $ New machine cost Sell old machine Total The old factory machine should b retained replaced Clil if you would like to show auction. Onon Chow Worla Question 5 Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $6,300 from sales $199,000, variable costs $175,000, and fixed costs $30,300. If the Big Bart line is eliminated, $20,500 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Sales $ Variable costs Contribution margin Fixed costs Net Income / (Loss) The Big Bart product line should bi eliminated continued Click if you would like to Show uestion: Open Show Work