1. #Ex 25-16Based on the data below, assume that Sirrus Phone Company uses the product cost concept of applyingthe cost-plus approach to product pricing.Variable Costs:Fixed Costs:Direct materials 130.00 per unitFactory overhead 175000Direct labor50.00Selling and adm. Exp 70000Factory overhead 35.00Selling and adm. Exp 25.00Total240.00 per unita. Determine the total manufacturing costs and the cost amount per unit for the production and saleof 3500 units for mobile phones.b. Determine the markup percentage (rounded to two decimal places) for mobile phones.c. Determine the selling price of mobile phones. Round to the nearest dollar.#2. T71.The sales, income from operations, and invested assets for each division of Winston Company are asfollows:Sales$5,000,0006,800,0003,750,000Division CDivision DDivision EIncome fromOperations$630,000760,000750,000InvestedAssets$3,900,0004,300,0007,250,0002. Management has established a minimum rate of return for invested assets of 8%.(a) Determine the residual income for each division.(b) Based on residual income, which of the divisions is the most profitable?#3 (T8) answer one of the multiple choice belowThe condensed income statement for a business for the past year is presented as follows:ProductSalesLess variable costsContribution marginLess fixed costsF$300,000180,000$120,00050,000G$220,000190,000$ 30,00050,000H$340,000220,000$120,00040,000Total$860,000590,000$270,000140,000Income (loss) from oper.$ 70,000$ (20,000)$ 80,000$130,000Management is considering the discontinuance of the manufacture and sale of Product G at thebeginning of the current year. The discontinuance would have no effect on the total fixed costs andexpenses or on the sales of Products F and H. What is the amount of change in net income for thecurrent year that will result from the discontinuance of Product G?$20,000 increase$30,000 increase$20,000 decrease$30,000 decrease#4 (T13)Pnok Company has been purchasing a component, Part Q, for $18.90 a unit. Pnok is currently operatingat 70% of capacity and no significant increase in production is anticipated in the near future. The cost ofmanufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows:Direct materialsDirect laborVariable factory overheadFixed factory overheadTotal$11.254.501.123.15$20.021. Prepare a differential analysis report, dated March 12 of the current year, on the decision to make orbuy Part Q.#5 (T14)FDE Manufacturing Company has a normal plant capacity of 37,500 units per month. Because of anextra large quantity of inventory on hand, it expects to produce only 30,000 units in May. Monthly fixedcosts and expenses are $112,500 ($3 per unit at normal plant capacity) and variable costs and expensesare $8.25 per unit. The present selling price is $13.50 per unit. The company has an opportunity to sell7,500 additional units at $9.90 per unit to an exporter who plans to market the product under its ownbrand name in a foreign market. The additional business is therefore not expected to affect the regularselling price or quantity of sales of FDE Manufacturing Company.Prepare a differential analysis report, dated April 21 of the current year, on the proposal to sell at thespecial price.