Samia Ltd. produces jewelry boxes for retail customers such as Walmart. One of their most popular products has the follo

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Samia Ltd. produces jewelry boxes for retail customers such as
Walmart. One of their most popular products has the following
selling price and costs:
The company, due to the impact of a world-wide pandemic, is not
at capacity. They also have some non-manufacturing fixed costs
(such as sales and administration costs).
They have provided the following details:
Zunish Ltd., who has not bought from Samia Ltd. before, has
offered to buy jewelry boxes for a special event that Zunish is
managing. Zunish Ltd. is from a geographic region outside the area
normally serviced by Samia Ltd. Zunish Ltd. has agreed to pay the
transportation costs. In addition, because no sales person was
involved, there will be no sales commission paid on this sale.
Other details of Zunish's offer are as follows:
Use the above information to answer the following questions.
Question 44 (1 point)
If Samia Ltd. accepts this order, will operating income
increase, decrease or stay the same?
Question 44 options:
a)
Stay the same
b)
Increase
c)
Decrease
Question 45 (3 points)
By how much will operating income change if the order is
accepted?
Enter your answer as a positive number.
Question 46 (1 point)
Assume, INSTEAD, that the order from Zunish Ltd. was obtained
through a sales person so sales commission has to be paid. In
addition, Zunish Ltd. has asked Samia Ltd. to pay all
transportation costs.
Given this new information, will Samia's operating income increase,
decrease or stay the same?
Question 46 options:
a)
Stay the same
b)
Increase
c)
Decrease
Question 47 (2 points)
Given this new information, by how much will operating income
change if the order was accepted now?
Enter your answer as a positive number.
Question 48 (3 points)
What qualitative factors support accepting the order from Zunish
Ltd.?
Choose all that apply. MAY HAVE MORE THAN 1
ANSWER** Explain
why please.
Question 48 options:
a)
Increase the company's brand awareness in the current
geographical region.
b)
May have a negative impact on regular business.
c)
Reduction in idle capacity.
d)
Improve employee moral.
e)
Reduce need to lay off employees.