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The Tolar Corporation has $400$ obsolete desk calculators that are carried in inventory at a total cost of $$26,800.$ If these calculators are upgraded at a total cost of $$10,000,$ they can be sold for a total of $$30,000.$ As an alternative, the calculators can be sold in their present condition for $$11,200.$

What is the financial advantage $($disadvantage$)$ to the company from upgrading the calculators?

Question $1$Select one:

a$.$

$($$$18,000)$

b$.$

$($$$8,000)$

c$.$

$$8,800$

d$.$

$$20,000$

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Question $2$

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Ahrends Corporation makes $70,000$ units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:

$$Direct materials$$17\mathrm{.}80$Direct labor$19\mathrm{.}00$Variable manufacturing overhead$1\mathrm{.}00$Fixed manufacturing overhead$17\mathrm{.}10$Unit product cost$$54\mathrm{.}90$

An outside supplier has offered to sell the company all of these parts it needs for $$48\mathrm{.}50$ a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $$273,000$ per year.

If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $$8\mathrm{.}20$ of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.

What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all $70,000$ units required each year? $($Round your intermediate calculations to $2$ decimal places.$)$

Question $2$Select one:

a$.$

$$3\mathrm{.}90$ per unit

b$.$

$$50\mathrm{.}60$ per unit

c$.$

$$58\mathrm{.}80$ per unit

d$.$

$$54\mathrm{.}90$ per unit

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Question $3$

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Cranston Corporation makes four products in a single facility. Data concerning these products appear below:

$$Products$$ABCDSelling price per unit$$42\mathrm{.}30$$$50\mathrm{.}00$$$37\mathrm{.}60$$$33\mathrm{.}50$Variable manufacturing cost per unit$$20\mathrm{.}80$$$30\mathrm{.}70$$$21\mathrm{.}00$$$19\mathrm{.}90$Variable selling cost per unit$$2\mathrm{.}70$$$2\mathrm{.}10$$$1\mathrm{.}00$$$2\mathrm{.}40$Milling machine minutes per unit$3\mathrm{.}304\mathrm{.}102\mathrm{.}601\mathrm{.}30$Monthly demand in units$1,0004,0003,0003,000$

The milling machines are potentially the constraint in the production facility. A total of $28,200$ minutes are available per month on these machines.

Which product makes the LEAST profitable use of the milling machines? $($Round your intermediate calculations to $2$ decimal places.$)$

Question $3$Select one:

a$.$

Product B

b$.$

Product C

c$.$

Product A

d$.$

Product D