Table Tools Managerial Third Homework 2019 2020(1) Microsoft Word -nces Mailings Review View Design Layout 15.14 1. 131. 12. 1. 11. 10.98 Second Question:( 3Points) The following are the XYZ Company's unit costs of making and selling an item at a volume of 1,000 units per month (which represents the company's capacity): Manufacturing Direct materials $1.50 Direct labor $2.00 Variable overhead $0.50 Fixed overhead $0.40 Selling and Administrative: Variable ... $2.00 Fixed $0.80 Present sales amount to 700 units per month. An order has been received from a customer in a foreign market for 100 units. The order would not affect current sales. XYZ's total fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 700 units and 1,000 units. The variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales Second Question:( 3Points) The following are the XYZ Company's unit costs of making and selling an item at a volume of 1,000 units per month (which represents the company's capacity): Manufacturing Direct materials $1.50 Direct labor $2.00 Variable overhead $0.50 Fixed overhead $0.40 Selling and Administrative: Variable $2.00 Fixed $0.80 Present sales amount to 700 units per month. An order has been received from a customer in a foreign market for 100 units. The order would not affect current sales. XYZ's total fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 700 units and 1,000 units. The variable selling and administrative expenses would have to be incurred on this special order as well as for all other sales Required: 1. How much will the company's profits be increased or (decreased) if it prices the 100 units at $7 each? 2- Assume the company has 50 units left over from last year which have small defects and which will have to be sold at a reduced price for scrap. The sale of these defective units will have no effect on the company's other sales. What cost is relevant as a guide for setting a minimum price