Question 7.1

Accounting

Part 1:

Part 2:

Part 3:

Answer the parts correctly for a Like!

Current Attempt in Progress Crane Company is considering the following alternatives: Alternative A Alternative B Revenues $30000 $44000 Variable costs 18000 18000 Fixed costs 10000 16000 What is the incremental profit? $0 $6000 $8000 $2000 Sheridan's Shop can make 1000 units of a necessary component with the following costs: $18000 Direct Materials Direct Labor 6000 Variable Overhead 3000 Fixed Overhead ? The company can purchase the 1000 units externally for $35000. The unavoidable fixed costs are $2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component? $8000 Cannot be determined $6000 $10000 A company has a unit contribution margin of $20 and a contribution margin ratio of 40%. What is the unit selling price? $8. Cannot be determined. $50. $33