15) Portland, Inc. has formed four activity cost pools: Prod…

15) Portland, Inc. has formed four activity cost pools: Product Design, Machining and Production, Machine Setup, and Inspection. Gina Taylor, Production Manager at Portland, oversees processes that are considered part of Machining and Production, Machine Setup, and Inspection. Taylor’s salary should be:

30) Potter has received a special order for 10,000 units of…

30) Potter has received a special order for 10,000 units of its product at a special price of $24. The product normally sells for $32 and has the following manufacturing costs: Per Unit Direct materials 9.60 Direct labor 4.80 Variable manufacturing overhead 3.20 Fixed manufacturing overhead 9.60 Unit cost 27.20 Potter is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Potter accepts the order, what effect will the order have on the company’s short-term profit?   

15) Portland, Inc. has formed four activity cost pools: Prod…

15) Portland, Inc. has formed four activity cost pools: Product Design, Machining and Production, Machine Setup, and Inspection. Gina Taylor, Production Manager at Portland, oversees processes that are considered part of Machining and Production, Machine Setup, and Inspection. Taylor’s salary should be:

52) Lawrence Corp. is considering the purchase of a new piec…

52) Lawrence Corp. is considering the purchase of a new piece of equipment. When discounted at a hurdle rate of 8%, the project has a net present value of $24,580. When discounted at a hurdle rate of 10%, the project has a net present value of ($28,940). The internal rate of return of the project is:

31) Cotton Corp. currently makes 10,000 subcomponents a year…

31) Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are: Per Unit Direct materials 32.50 Direct labor 13.00 Variable manufacturing overhead 19.50 Fixed manufacturing overhead 26.00 Unit cost 91.00 An outside supplier has offered to provide Cotton Corp with the 10,000 subcomponents at an $84.50 per unit price. Fixed overhead is not avoidable. If Cotton Corp. accepts the outside offer, what will be the effect on short-term profits?