THIS IS TWO QUESTION ONLY PLEASE PLEASE ANSWER.I WILL HIT LIKE.

QUESTION # 1

Zentech Phone Gear Inc. produces high-quality, durable protective cases for a variety of cellular phones. The company just received a special order to produce 440 units of a modified case for a specific phone model. The unit cost for the regular case is $39 ($31 in total for variable costs and $8 for allocated fixed manufacturing overhead that is common to the company). A regular case is priced at $61/unit. Extra costs for the modified case would be as follows:

- Extra paint and plastic required for the modified case costs $1 per unit. - Adjustments to the design of the modified case costs $2,464 (a one-time cost). The price charged for a modified case is $63/unit. For each modified case produced and sold, the production and sale of a regular case must be given up. (i.e. Zentech Phone Gear is currently operating at full capacity). Should the company accept the order for the modified cases?

Do not enter dollar signs or commas in the input boxes.

Round Fixed Cost per Unit and Total Relevant Cost to 2 decimal places.

(Put answers here:)

FORGONE CONTRIBUTION MARGIN PER UNIT: $

VARIABLE COST PER UNIT: $

FIXES COST PER UNIT: $

TOTAL RELEVANT COSTS: $

ACCEPT OR REJECT:

QUESTION #5

Sparrow Rollers Company produces bikes. Each bike has the following costs:

Direct Materials	$9.00
Direct Labor	$12.00
Variable Manufacturing Overhead	$5.00
Allocated Fixed Manufacturing Overhead	$11.00
Unit Cost	$37.00

Note: The fixed manufacturing overhead is common to the company. The production capacity is 347,000 units per year. However, Sparrow Rollers expects to produce only 246,000 units for the coming year. The company also has fixed selling costs of $613,000 per year and variable selling costs of $6 per unit sold. Each bike normally sells for $40 each. Recently, a customer offered to buy 49,000 bikes at a special price of $29 each. This order would not have any variable selling costs because no sales commissions are involved. Based on a quantitative analysis, should the company accept the special order?

Do not enter dollar signs or commas in the input boxes. Use the negative sign for values that must be subtracted and negative values.

Total Revenues	$Answer
Total Direct Materials	$Answer
Total Direct Labor	$Answer
Total Variable Overhead	$Answer
Incremental Operating Income	$Answer

The special order should be:

QUESTION # 2

Jenson Monitors Ltd., a manufacturer of computer monitors, currently produces a 19-inch LCD monitor. The company's accounting department has reported the following annual costs of producing the LCD monitor internally:

Jenson Monitors Annual Production Costs for 19-inch LCD Monitor
	Per Unit	10,000 Units
Direct Materials	$20.00	$200,000
Direct Labor	$14.00	$140,000
Variable Overhead	$5.00	$50,000
Production Supervisor's Salary	$15.00	$150,000
Depreciation of LCD manufacturing equipment	$4.00	$40,000
Allocated Fixed Overhead	$8.00	$80,000
Total Cost	$66.00	$660,000

An external supplier has offered to provide Jenson Monitors 10,000 units of the same LCD monitor per year at a price of $46 each. Also consider the following information:

The LCD manufacturing equipment has no salvage value and has no other use aside from producing the 19-inch LCD monitors. It cannot be sold.

The fixed overhead costs allocated to the LCD monitors are common to all items produced in the factory.

The production supervisor will take over duties in another department if the monitors are purchased from the external supplier. If this is the case, his annual salary will drop to $135,000.

Should the company continue manufacturing the monitors internally or begin purchasing them from the external supplier? Do not enter dollar signs or commas in the input boxes. Round all answers to 2 decimal places.

Jenson Monitors Make or Buy Analysis
	Production Cost Per Unit	Per Unit Differential Cost		Total Differential Cost (10,000 Units)
		Make	Buy	Make	Buy
Direct Materials	$20.00	$Answer	$Answer	$Answer	$Answer
Direct Labor	$14.00	$Answer	$Answer	$Answer	$Answer
Variable Overhead	$5.00	$Answer	$Answer	$Answer	$Answer
Supervisor's Salary	$15.00	$Answer	$Answer	$Answer	$Answer
Depreciation of Equipment (sunk)	$4.00	$Answer	$Answer	$Answer	$Answer
Allocated Fixed Overhead (common)	$8.00	$Answer	$Answer	$Answer	$Answer
Outside Purchase Price		$Answer	$Answer	$Answer	$Answer
Total Relevant Cost	$66.00	$Answer	$Answer	$Answer	$Answer

The company should:

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