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A company produces three peoducts with the following costs and selling prices: Round Squars Triangle 524 $26 $20 Product Name Selling Price Per Unit Variable Cost Per Unit S10 10 $12 Machine Hours Per Unit 2 The company has a limit of 14,600 machine hours available per month. The company has a monthly fixed cost of $30,000. The demand for each of the products is 2.500 units per month. The company's goal is to maximize its profitability Suppose the company can rent a machine that will provide an additional 600 machine hours per month. What is the maximum monthly rent the company would be willing to pay for this machine? A. $2,400 B. $2,000 C. $4,200 D. $1.200 E. $2,800 The Varone Company makes a single product called a Hom. The company has the capacity to 15. produce 43,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: costs to Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. V'ariable selling expense Fixed sellinexpense $20 $10 $5 $7 S8 $2 The regular selling price for one Hom is $60. A special order has been received from the Fairview Company to purchase 8,000 Homs next year. For this special order, the variable selling expense would be reduced by 25%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $12.000 and it would have no use after the special order was filled If Varone can expect to sell 34,000 Homs next year through regular channels, at what special order price from Fairview should Varone be economically indifferent between either accepting or not accepting this special order? (Choose the closest answer.) A. $43.70 B. $48.50 C.$42.50 D. $39.50 E.$41.00

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