ACCT 434 Final Exam Set 4 For more course tutorials visit www . uophelp . com
evant operating range . Explain whether the Red Car Division should a ccept the offer . Support your decision showing all calculations 4 . ( TCO 8 ) Sportswear Company manufactures socks . The Athletic Di vision sells its socks for $ 6 a pair to outsiders . Socks have manufactur ing costs of $ 2.50 each for variable and $ 1.50 for fixed . The division ' s total fixed manufacturing costs are $ 105,000 at the normal volume of 70,000 units . The European Division has offered to buy 15,000 socks at the full cos t of $ 4 . The Athletic Division has excess capacity and the 15,000 unit s can be produced without interfering with the current outside sales of 70,000 . The 85,000 volume is within the division ' s relevant operating range . Explain whether the Athletic Division should accept the offer . Suppo rt your decision showing all calculations . ( Points : 25 ) 5 . ( TCO 11 ) For supply item LK , Boatman Company has been orderin g 125 units based on the recommendation of the salesperson who calls on the company monthly . The company has hired a new purchasing agent , who wants to start using the economic-orderquantity method and its supporting decision elements . She has gather ed the following information : Annual demand in units 250
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ACCT 434 Final Exam Set 4 For more course tutorials visit www . uophelp . com
FINAL EXAM – D 1 . ( TCO 1 ) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management ? ( Points : 5 )