Cheesy, inc., produces ravioli and tortellini. management estimates that cheesy will use 10,000 pounds of cheese filling each month. the costs associated with each pound of filling include $5.32 of direct materials, $7.48 of direct labor, $7.30 of variable overhead. cheesy’s monthly fixed overhead of $2,500 cannot be eliminated if cheesy outsources its pasta production. pasta specialties has offered to supply 10,000 pounds of cheese filling each month for $20 per pound. should cheesy accept the offer to buy cheese filling?
a. no, because it will save $2,500 per month by producing the filling.
b. yes, because it will save $1,000 per month by outsourcing the filling.
c. yes, because it will save $2,500 per month by outsourcing the filling.
d. yes, because it will save $3,500 per month by outsourcing the filling.

He moto hotel opened for business on may 1, 2017. here is its trial balance before adjustment on may 31. moto hotel trial balance may 31, 2017 debit credit cash $ 2,283 supplies 2,600 prepaid insurance 1,800 land 14,783 buildings 72,400 equipment 16,800 accounts payable $ 4,483 unearned rent revenue 3,300 mortgage payable 38,400 common stock 59,783 rent revenue 9,000 salaries and wages expense 3,000 utilities expense 800 advertising expense 500 $114,966 $114,966 other data: 1. insurance expires at the rate of $360 per month. 2. a count of supplies shows $1,050 of unused supplies on may 31. 3. (a) annual depreciation is $2,760 on the building. (b) annual depreciation is $2,160 on equipment. 4. the mortgage interest rate is 5%. (the mortgage was taken out on may 1.) 5. unearned rent of $2,580 has been earned. 6. salaries of $810 are accrued and unpaid at may 31