Florida International University Operations And Supply Chain Management Assignment Help -See Below

Question - 1.
2. Multiple Choice Question 53
It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale which
normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at $30 each. Ross would
incur special shipping costs of $2 per scale if the order were accepted. Ross has sufficient unused
capacity to produce the 2,000 scales. If the special order is accepted, what will be the effect on net
income?
$8,000 decrease
$12,000 decrease
$60,000 increase
$8,000 increase
Multiple Choice Question 69
Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000


If Carter ...Read More purchases the component externally, $30,000 of the fixed costs can be avoided. At what
external price for the 100 units is the company indifferent between making or buying?
$200,000
$230,000
$240,000
$170,000
Multiple Choice Question 79
Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost
of the unassembled product is $60 and Mink would sell it for $130. The cost to assemble the product
is estimated at $42 per unit and the company believes the market would support a price of $170 on
the assembled unit. What decision should Mink make?
Sell before assembly, the company will be better off by $2 per unit.
Process further, the company will be better off by $28 per unit.
Sell before assembly, the company will be better off by $40 per unit.

Process further, the company will be better off by $58 per unit.
3. ...Read Less

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