Question: Question 10 (1 point) Bonus Corp's variable costs per unit are $3 for DM, $4 for DL, and $5 for variable manufacturing overhead. Fixed costs

 Question 10 (1 point) Bonus Corp's variable costs per unit are

Question 10 (1 point) Bonus Corp's variable costs per unit are $3 for DM, $4 for DL, and $5 for variable manufacturing overhead. Fixed costs are $5 per unit. They produce a flashlight that has a $35 selling price. A new customer offers to purchase 3,000 flashlights if Bonus Corp could sell them for $15 each. If Bonus Corp takes the order, they will incur an additional variable cost per unit of $1. Enough excess capacity exists to take the order without losing any existing sales. If the special order is accepted, what will be the effect on net income? $6,000 increase $6,000 decrease $9,000 decrease $45,000 increase Question 11 (1 point) Mars could buy 5,000 gears for $18 each from a vendor. When Mars makes the gears, variable costs are $16 per unit, and fixed costs are $8 per unit. If the order is accepted, fixed costs will be reduced by $3. Should Mars make or buy the gears, and what will be the amount of savings? Buy; savings = $15,000 Buy; savings = $5,000 Make; savings = $10,000 Make; savings = $5,000

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