∙ Sixteen times each year, a new card design will be put into production. Each new design will require $ 600 in setup costs. 4.( TCO 8) Sportswear Company manufactures socks. The Athletic Division sells its socks for $ 6 a pair to outsiders. Socks have manufacturing 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 cost of $ 4. The Athletic Division has excess capacity and the 15,000 units 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. Support your decision showing all calculations.( Points: 25) Question 1. 1.( TCO 2) Russell Company has the following projected account balances for June 30, 20X9:….. Prepare a budgeted income statement AND a budgeted balance sheet as of June 30, 20X9. Russell Company Income Statement Question 2. 2.( TCO 5) Steven ' s Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $ 5,000. It has variable costs totaling $ 2,800 and fixed costs of $ 1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $ 600,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds. A competitor is introducing a new hospital bed similar ……..?( Points: 25) Question 3. 3.( TCO 7) Dulce Greeting Cards Incorporated is starting a new business venture and is in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows: ∙ For 16 times each year, a new card design will be put into production. Each new design will require $ 300 in setup costs. ∙ The parchment grade card product line incurred $ 75,000 in development costs and is expected to be produced over the next four years. ……………( Points: 25)