QUESTION 1 Aero Technology produces two types of optical mouse: model XT100 and model FT100. The two products are processed through the same...

QUESTION 1Aero Technology produces two types of optical mouse: model XT100 and model FT100. The two products are processed through the same production department Assembly and Packaging. Demands for the next month are 2,000 units for XT100 and 6,000 units for FT100. The product cost information is as follows (per unit):XT100(RM)FT100(RM)Direct materials3015Direct labor*2012Marketing expenses (20% variable)10025Fixed manufacturing overhead42Variable manufacturing overhead52Selling price9850Machine hours standard per unit:Assembly2.51.2Packaging0.80.5Direct labor hours standard per unit:Assembly1.20.8Packaging32.5*All direct labor wages are treated as fixed costsCurrently, the capacity of machine hours for Assembly department is 11,000 hours and 5,000 hours for Packaging department. Meanwhile, the direct labor hours available for Assembly department and Packaging department are 7,200 and 24,000 hors, respectively. The capacity of machine and direct labor cannot be adjusted in a short-time period.REQUIRED:(a)Determine whether Aero Technology has enough capacity to meet the current demands.(b)Determine the production levels for the two models that will maximize profits.QUESTION 2The manufacturing capacity of Ritter Rotator Companys plant facility is 60,000 rotators per quarter. Operating results for the first quarter of 2009 are as follows:Sales (36,000 units @ RM10)RM360,000Less: Variable manufacturing and selling costs198,000Contribution marginRM162,000Fixed costs99,000Operating incomeRM63,000A foreign distributor has offered to buy 30,000 units at RM9 per unit during the second quarter of 2009. Domestic demand is expected to remain the same as in the first quarter.REQUIRED:(a)Determine the impact on operating income if Ritter accepts this order. What other considerations are relevant in this decision?(b)Assume that Ritter decides to run an extra shift so that it can accept the foreign order without foregoing sales to its regular domestic customers. The proposed extra shift would increase capacity by 25% and increase fixed costs by RM25,000. Determine the impact on operating income if Ritter operates the extra shift and accepts the export order. What other considerations are relevant in this decision?QUESTION 3Premier Company manufactures gear model G37 used in several of its farm-equipment products. Annual production volume of G37 is 20,000 units. Unit costs for G37 are as follows:ItemsRMDirect materials 55Direct labor30Variable support25Fixed support15Total costsRM125Alternatively, Premier can also purchase gear model G37 from an outside supplier for RM120 per unit. If G37 is outsourced, Premier can use the facility where G37 is currently manufactured for production of another gear model G49. This would save Premier RM113,000 in facility rental and other costs presently incurred.REQUIRED: Determine whether Premier should make or buy G37.