Geneva company manufactures dolls that are sold to various customers. the company works at full capacity for half the year to meet peak demand, and operates at 80% capacity for the other half of the year. the following information is provided: units produced and sold 600,000 units selling price $ 35 / unit variable manufacturing costs $ 20 / unit fixed manufacturing costs $ 1,200,000 / yr. variable selling and administrative costs $ 6 / unit fixed selling and administrative costs $ 950,000 / yr. geneva receives a purchase order to make 5,000 dolls as a one-time event. the good news is that this order is during a period when geneva does have excess capacity. what is the lowest selling price geneva should accept for this purchase order? $35.00 $26.00 $29.50 $23.50

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600