David s. taylor, ceo of oakland auto, is strongly in favor of acquiring crc technology, a firm in an unrelated industry. some members of the board of directors are questioning taylor's motives for the acquisition. they argue that it is not uncommon for ceos to push for acquisitions becauseselect one: a. a successful acquisition will increase the ceo's power over the board of directors. b. higher ceo pay is related to larger organization size. c. ceos nearing retirement seek to create empires to continue their legacy. d. making an acquisition is an easier route to increased firm value than is improving the firm's core competencies.

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.