The total cost (q) of producing goods is given by: =0.−0.+(q)=0.01q3−0.6q2+14qwhat is the fixed cost? fixed cost = dollarswhat is the maximum profit if each item is sold for 10 dollars? (assume you sell everything you produce. also note that you can only produce a whole number of goods.)maximum profit = dollarssuppose we fix production at 36 goods produced, and that they all sell when the price is 10 dollars each. also suppose that for each 1 dollar increase in price, 2 fewer goods are sold (so if the price is 11 dollars, 34 of the 36 goods being produced are sold.)to maximize profit in this case, we should ? decrease increase neither increase nor decrease the price by dollars.(enter zero if the price should remain at 10 dollars.)

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?