Managerial Acct2 2Nd Edition Sawyers Test Bank Full Chapter PDF

Managerial ACCT2 2nd Edition Sawyers
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Chapter 7--Relevant Costs and Product Planning Decisions
Student: ___________________________________________________________________________
1. Which of the following statements is true regarding special order decisions?

A. Special order decisions are long-run decisions.
B. Whether or not the company has excess capacity is seldom a consideration for special order decisions.
C. Both quantitative and qualitative impacts should be considered.
D. The sales price of a special order should never be below the price offered to regular customers.
2. Which of the following would not be a factor in the consideration of whether or not a special order should be
accepted?
A. Excess capacity
B. Variable costs
C. Sunk costs
D. Qualitative factors
3. Which of the following would not be a factor in the consideration of whether or not a special order is
accepted or not?
A. Variable costs
B. Avoidable fixed costs
C. Sales price of the special order
D. Unavoidable fixed costs
4. Which of the following types of costs should always be considered in special order decisions?
A. Unavoidable costs
B. Relevant costs
C. Sunk costs
D. Fixed costs
5. Which of the following will always be considered in special order decisions?

B. Fixed costs
C. Sunk costs
D. Excess capacity
6. A local science museum normally sells tickets to its museum for $5 each. The daily maximum capacity of the
museum is 1,000 visitors. At the maximum capacity, fixed costs are $2 per visitor and variable costs are $1.50
per visitor. A local school group has approached the museum wishing to purchase 50 special passes at a cost of
$2.50 each. Assuming the museum has excess capacity, if the special order were accepted, net income would:
A. increase by $50.00.
B. decrease by $125.00.
C. increase by $125.00.
D. decrease by $50.00.
7. A local vendor at the county fair sells snow cones for $.50 each. When 250 snow cones are sold, each snow
cone is estimated to have $.10 in variable costs and $.15 in fixed costs. A local school group plans on attending
the fair next week and wishes to purchase 50 snow cones for $.25 each. The vendor can sell as many as 400
snow cones per day. If the special order were accepted, net income would:
A. not change.
D. increase by $7.50.
the fair next week and wishes to purchase 50 snowcones for $.25 each. The vendor can sell as many as 400
snowcones per day. What is the minimum price the vendor should charge for the snowcones?
A. $ .50
B. $ .25
C. $ .10
D. $ .75
9. Preston Wade
Preston Wade, a local craftsman, normally sells his handcrafted wooden birdhouses for $145 each. Preston has
the capacity to produce as many as 60 birdhouses a week. In a normal week, Preston makes 20 birdhouses with
the following costs per unit:
Direct materials $12.00

Direct labor $15.00
Variable overhead $ 3.00
Fixed overhead $ 5.00
Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery to purchase 40 birdhouses for a price
of $80 each. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special
engraving tool at a cost of $250. If Preston accepts the special order, net income will increase by:
A. $1,050
B. $1,750
C. $2,000
D. $3,200
10. Preston Wade

Direct labor $15.00
Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery for 40 birdhouses. The nursery wishes
to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250.
Preston requires a minimum $2,500 profit on any special order. The minimum price per birdhouse that Preston should charge the nursery is:
A. $65.00.
B. $98.75.
C. $95.00.
D. $145.00.
11. JNR Products produces and sells plastic soda cups with specialized logos on the front. They sell the cups in
batches of 500 for $125 per batch. The company has the capacity to produce 100 batches per month but
averages much less. When 75 batches are sold a month, each batch has $40 worth of variable costs and $5 worth
of fixed overhead costs allocated to it. The company has been approached by a local fireman's association who
wishes to purchase three batches of cups for $50 per batch. If the special order were accepted, net income
would:
A. increase by $10.
B. decrease by $225.
C. increase by $15.
D. increase by $30.
12. Collegiate Products produces and sells padded stadium seats emblazoned with a university logo. The
company has the capacity to produce as many as 6,000 seats per month but consistently averages much less.
When 4,500 seats are produced, each seat has $5 of variable costs and $2 of fixed overhead costs allocated to it.
The seats typically sell for $12 each. The company has been approached by a small college who wishes to
purchase 500 seats for special alumni at a price of $5 per seat. If the special order were accepted, net income
would:
A. decrease by $1,000.
B. increase by $2,500.
C. decrease by $12,500.
D. not change.
13. Which of the following costs is least likely to be relevant in deciding whether to accept a special order?
A. Variable direct labor costs
B. Variable selling costs
C. Fixed manufacturing overhead
D. Variable packaging and shipping costs
14. Vertical integration:

A. is achieved when a company acquires many of its competitors.
B. is accomplished when a company is involved in multiple steps in the value chain.
C. is rarely attempted due to the risks involved.
D. ensures that the highest quality products are produced at the lowest possible price.
15. When are fixed costs relevant in a make or buy decision?

A. Fixed costs are never relevant to the decision.
B. Fixed costs are relevant when they differ among alternatives.
C. Fixed costs are always relevant to the decision.
D. Fixed costs are relevant when they exceed variable costs.
16. Which of the following is not a consideration associated with outsourcing?

A. The effect on employees.
B. The effect on vertical integration.
C. The effect on unavoidable fixed costs.
D. The effect on variable costs.
17. Which of the following statements is true when a company is considering whether to make or buy a
component of a product that it currently manufactures?
A. If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally.
B. If the current fixed overhead is avoidable when outsourcing, the product should be outsourced.
C. If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should
be outsourced.
D. If the cost of outsourcing is greater than the direct materials cost of making internally, the product should
continue to be made internally.
18. Speed Quest Inc. manufactures speed boats. Currently, the company manufactures its own engine for the
boats at the following unit costs:

Direct labor $40.00
Variable overhead $15.00
Fixed overhead $20.00
Another manufacturer has offered to supply Speed Quest with the engine at a cost of $85 each. Speed Quest currently makes 1,000 boats annually. If
Speed Quest accepts the offer, what will be the short-term impact on net income?
A. Decrease of $5,000.
B. Increase of $15,000.
C. Decrease of $85,000.
D. Increase of $20,000.
19. Quinton Products manufactures digital cameras. Currently, the company manufactures its own carrying case
for the cameras at the following unit costs:

Direct labor $2.00
Another manufacturer has offered to supply Quinton with the case at a cost of $6 each. Quinton currently makes 9,000 cases annually. If Quinton
accepts the offer, what will be the short-term impact on net income?
A. No impact on net income.
B. Decrease by $9,000.
C. Increase by $9,000.
D. Decrease by $18,000.
20. Averette & Averette

Averette & Averette, a local dental practice, currently makes its own dentures for customers. The dental
practice has one part-time employee who comes in weekly to make dentures. The employee is paid $150 per
denture set. The direct materials and variable overhead cost per set of dentures is $75 and $25, respectively. In
addition, the practice allocates $10,000 of fixed overhead to the denture-making department. The practice
makes 1,000 sets of dentures per year. An outside company who specializes in the making of dentures has
offered to make each set of dentures for Averette & Averette for $255 per set.
Refer to the Averette & Averette information above. What are Averette & Averette's total relevant costs to
make the dentures themselves?
A. $300
B. $400
C. $415
D. $350
Refer to the Averette & Averette information above. If Averette & Averette outsources the making of dentures,
the net income will:
C. increase by $15,000.
D. decrease by $5,000.
22. Henderson Manufacturing Inc.

Henderson Manufacturing Inc. manufactures electric scooters. The company currently makes all of the
electronic components for the scooter itself. When 10,000 motors are manufactured each year, the motor costs
per unit are as follows:
Direct materials $5
Direct labor 5
Variable overhead 2
Fixed overhead 7
Plymouth Inc. has offered to sell Henderson 10,000 motors for $14 per unit. If Henderson accepts the offer, 50% of the fixed overhead currently
allocated to the motors could be avoided.
Refer to the Henderson Manufacturing Inc. information above. What are the relevant costs per unit of Henderson manufacturing the motors
themselves?
A. $15.50
B. $15.20
C. $19.00
D. $14.00

Direct materials $5
Direct labor 5
Variable overhead 2
Fixed overhead 7
Refer to the Henderson Manufacturing Inc. information above. If Henderson accepts the offer to purchase 6,000 motors from Plymouth, the net
income will:
D. increase by $9,000.
24. Compton Products Inc.

Compton Products Inc. manufactures humidifiers. The company currently makes all of the electronic
components for the humidifier itself. When 10,000 units are manufactured each year, the motor costs per unit
are as follows:
Direct materials $6
Direct labor 8
Variable overhead 7
Fixed overhead 9
McClintock Inc. has offered to sell Compton 10,000 motors for $25 per unit. If Compton accepts the offer, 75% of the fixed overhead currently
Refer to the Compton Products Inc. information above. What are the relevant costs per unit of Compton making the motors themselves?
A. $21.00
B. $23.25
C. $27.75
D. $30.00

are as follows:
Direct materials $6
Direct labor 8
Variable overhead 7
Fixed overhead 9
Refer to the Compton Products Inc. information above. If Compton accepts the offer to purchase 10,000 motors from McClintock, the net income
will:
A. increase by $27,500.
B. decrease by $17,500.
26. In the decision on whether or not to drop an unprofitable product line, the product line will most likely be
dropped if:
A. all of the product line's fixed costs are unavoidable.
B. the product line's total fixed costs are less than the contribution margin lost from dropping the product line.
C. the contribution margin lost from dropping the product line is less than the fixed costs avoided from
dropping the product line.
D. the contribution margin lost from dropping the product line is more than the fixed costs avoided from
27. A particular product line should not be dropped if:

A. its total fixed costs are more than its contribution margin.
B. its avoidable fixed costs are less than its contribution margin.
C. its unavoidable fixed costs are more than its contribution margin.
D. its variable costs are more than its fixed costs.
28. Laurel Inc. has three product lines: A, B, and C.
A B C Total
Sales $20,000 $35,000 $22,000 $77,000
Variable costs 8,000 10,000 14,000 32,000
Contribution margin 12,000 25,000 8,000 45,000
Fixed costs 4,000 11,000 9,000 24,000
Net income $ 8,000 $14,000 $ (1,000) $21,000
Management is considering dropping product line C. If it is discontinued, one-half of its fixed costs can be avoided. The discontinuation of product
line C would:
A. decrease net income by $3,500.
B. increase net income by $1,000.
C. decrease net income by $12,500.
D. increase net income by $4,500.
29. Tremaine Inc. has three product lines: A, B, and C.
A B C Total
Sales $55,000 $90,000 $95,000 $240,000
Variable costs 37,000 40,000 45,000 122,000
Fixed costs 23,000 20,000 30,000 73,000
Net income $(5,000) $30,000 $20,000 $ 45,000
Management is considering dropping product line A. If it is discontinued, $14,000 of its fixed costs can be avoided. The discontinuation of product
line A would:
30. Carlton Products has three product lines: A, B, and C.
A B C Total
Sales $500,000 $550,000 $700,000 $1,750,000
Variable costs 280,000 420,000 300,000 1,000,000
Fixed costs 100,000 140,000 150,000 390,000
Net income $120,000 $ (10,000) $250,000 $ 360,000
Management is considering dropping product line B. If it is discontinued, all of its fixed costs can be avoided. The discontinuation of product line B
would:
A. decrease net income $10,000.
B. increase net income $140,000.
C. decrease net income $130,000.
D. increase net income $10,000.
31. Paxton Products has three product lines: A, B, and C.
A B C Total
Sales $90,000 $150,000 $200,000 $440,000
Variable costs 50,000 120,000 100,000 270,000
Fixed costs 15,000 40,000 50,000 105,000
Net income $25,000 $(10,000) $ 50,000 $ 65,000
Management is considering dropping product line B. In order for the dropping of product line B to not cause an overall decrease in profits, product
line B's avoidable fixed costs should be at least:
A. $40,000.
B. $30,000.
C. $10,000.
D. $70,000.
32. Which of the following statements regarding resource utilization is not true?
A. Resource utilization decisions are usually short-term in nature.
B. Resource utilization decisions require the identification of a constraint.
C. Resource utilization decisions relates to an analysis of which fixed costs are unavoidable.
D. Resource utilization decisions require managers to compute a product's contribution margin.
33. Which of the following is the least likely to be a consideration in a resource utilization decision?
A. Shelf space
B. Direct labor hours
C. Machine time
D. Fixed costs
34. In resource utilization decisions, managers should:

A. minimize the contribution margin per unit.
B. minimize the use of the scarce resource.
C. maximize the contribution margin per unit of scarce resource.
D. maximize the contribution margin per unit.
35. Decker Products

Decker Products manufactures standard and deluxe wooden swing sets. Selected data related to each product is
as follows:
Standard Deluxe
Sales price per unit $900 $2,000
Direct materials cost per unit 100 500
Direct labor cost per unit 300 700
Variable overhead cost per unit 50 100
Machine hours per unit 4 hours 8 hours
Most of the manufacturing process for the sets is done on machines. There is a maximum of 10,000 machine hours available each year.
Refer to the Decker Products information above. What is the contribution margin per unit of limited resource for each type of set?
A. Standard: $125.00 Deluxe: $100.00
B. Standard: $225.00 Deluxe: $250.00
C. Standard: $450.00 Deluxe: $700.00
D. Standard: $112.50 Deluxe: $ 87.50
36. Decker Products

as follows:
Standard Deluxe
Refer to the Decker Products information above. If demand were strong for both sets and the company could sell an unlimited number of either
style, how many of which kind(s) of wooden swing set(s) should be produced in order to maximize profits?
A. 2,500 standard sets
B. 1,250 deluxe sets
C. 833 standard sets and 833 deluxe sets
D. 1,500 standard sets and 1,250 deluxe sets
37. Decker Products

as follows:
Standard Deluxe
style, what is the maximum total contribution margin the company could have?
A. $ 875,000
B. $ 281,250
C. $1,125,000
D. $1,750,000
38. Kellerman Detailing Service

Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected
data related to each package is as follows:
Standard Deluxe
Sales price $90 $195
Direct materials cost 20 40
Direct labor cost 5 40
Variable overhead cost 5 15
Direct labor hours cost 3 hours 4 hours
Most of the car detailing is done by hand.
Refer to the Kellerman Detailing Service information above. There is a maximum of 4,050 direct labor hours available each year. If demand were
equally strong for both packages and the company could sell an unlimited number of either package, how many of which kind(s) of package(s)
should be sold in order to maximize profits?
A. 1,400 standard
B. 1,075 deluxe
C. 1,400 standard and 1,075 deluxe
D. 810 standard and 810 deluxe
Standard Deluxe
Refer to the Kellerman Detailing Service information above. For the upcoming year, there is a maximum of 4,300 direct labor hours available.
Management believes that the demand for both the standard and deluxe detailing is limited to 1,000 each per year. How many standard and deluxe
detailing jobs should be sold in the upcoming year in order to maximize profits?
A. Standard: 900 Deluxe: 750
B. Standard: 100 Deluxe: 1,000
C. Standard: 1,400 Deluxe: 1,000
D. Standard: 450 Deluxe: 900

Standard Deluxe
Management believes that the demand for both the standard and deluxe detailing is limited to 1,000 each per year. If the company maximizes profits,
what is the maximum contribution margin the company could have in the upcoming year?
A. $ 67,500
B. $ 60,000
C. $106,000
D. $ 60,750
41. Mountaineer Products
Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to
each type of tent is as follows:
Single-wall Double-wall
Direct materials 25 50
Direct labor 20 40
Variable overhead 10 15
Machine hours 2 3
Total fixed overhead is $150,000. Most of the manufacturing process is done on specialized machines. For the upcoming year, there is a maximum of
9,000 machine hours available. Management believes there is sufficient demand for 3,000 single-wall and 4,000 double-wall tents each year.
Refer to the Mountaineer Products information above. In order to maximize profits, how many of each type of tent should be produced?
A. Single-wall: 3,000 Double-wall: 1,000
B. Single-wall: 0 Double-wall: 3,000
C. Single-wall: 1,800 Double-wall: 1,800
D. Single-wall: 1,500 Double-wall: 4,000

Direct labor 20 40
Machine hours 2 3
Refer to the Mountaineer Products information above. If the company produces in order to maximize its profits, what would be the contribution
margin for the upcoming year?
A. $232,500
B. $382,500
C. $705,000
D. $855,000
43. Tilton Food Warehouse Club sells food and other items in bulk to its members. Tilton is very selective in
the products it sells because of limited shelf space. It has been asked by a canned vegetables manufacturer to
consider adding three of its canned food items. The following information is available regarding each of the
possible canned food items:
Item #1 Item #2 Item #3

Sales price per unit $3.50 $4.50 $7.00
Cost to purchase 1.25 2.00 3.00
Units per foot of shelf space 3 2 1
Assuming that there is unlimited demand for all items, if Tilton has 15 feet of shelf space available, which of the following statements is true if they
wish to maximize profits?
A. Tilton should sell only item #1.
B. Tilton should sell only item #2.
C. Tilton should sell only item #3.
D. Tilton should sell an equal amount of each item.
44. If a company is faced with a limited resource, which of the following is not a feasible option for alleviating
the constraint?
A. Focusing on products that require less use of the resource.
B. Increasing the capacity of the limited resource.
C. Reducing the use of the resource in production.
D. Increasing the capacity of an underutilized resource.
45. The theory of constraints:

A. is a management tool used to determine whether or not a company should accept a special order.
B. helps in identifying the bottlenecks in a production process.
C. helps in estimating the fixed overhead costs in a production process.
D. is a management tool used for deciding whether a product should be sold "as is" or processed further.
46. Which of the following is most likely to represent a bottleneck?

A. A production machine that is underutilized.
B. A workstation that requires significant supervision.
C. A production machine that has limited capacity.
D. An employee who has one hour of idle time each day.
47. In the production process, bottlenecks:

A. maximize profits.
B. maximize the use of scarce resources.
C. limit throughput.
D. minimize the total cost of a product.
48. In deciding whether to sell a product or to process it further, which of the following pieces of information
would not be relevant to the decision?
A. Costs of further processing.
B. Costs incurred up to the decision point.
C. Sales price if processed further.
D. Customer demand with further processing.
49. In deciding whether to sell a product or to process it further, which of the following costs are relevant to the
decision?
A. Material costs incurred up to the decision point.
B. Costs incurred to process further.
C. Overhead costs incurred up to the decision point.
D. Direct materials and direct labor costs only.
50. In a sell or process further decision, if the incremental revenue of additional processing is greater than the
incremental cost of additional processing, then:
A. it is less profitable to process further.
B. it is more profitable to process further.
C. total fixed costs have increased.
D. total product costs have decreased.
51. Carolina Potato Inc. currently sells cut sweet potatoes for $.85 per can. The cost of producing the sweet
potatoes is $.18 per can. Carolina Potato is considering starting a line of mashed sweet potatoes. The additional
processing costs would be $.06 per can and each can would sell for $.95. Which of the following pieces of
information is not relevant to the decision to sell or process further?
A. $.06 additional processing cost
B. $.18 production cost
C. $.95 sales price
D. demand for pureed sweet potatoes
52. Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag
of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by
dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the
chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags of either type of cookie per
year, which of the following statements is true if she chooses to process the cookies further?
A. Net income would increase by $2,250 per year.
B. Net income would decrease by $2,500 per year.
C. Net income would decrease by $250 per year.
D. Net income would increase by $15,250 per year.
53. Wright Manufacturing
Wright Manufacturing makes picnic tables in three sizes: small, medium, and large. The picnic tables can be
sold with or without a finishing stain. The following information is available for each table:
Small Medium Large

Initial sales price $60 $100 $175
Initial cost 20 40 55
Sales price after staining 70 125 210
Cost of staining 11 15 20
Number sold per month 100 300 175
Refer to the Wright Manufacturing information above. Which table(s) should be processed further?
A. Small and medium tables
B. Medium and large tables
C. Large tables
D. Small, medium, and large tables

Small Medium Large

Refer to the Wright Manufacturing information above. What is the maximum amount of increase in net income from further processing?
A. $81,125
B. $ 5,525
C. $82,125
D. $ 5,625
55. Joyner Products
Joyner Products makes cedar garden benches in three sizes: small, medium, and large. Joyner sells the benches
to local retailers. The benches can be sold with or without assembly. The following information is available for
each table:
Small Medium Large

Initial sales price $ 80 $120 $225
Sales price after assembly 120 160 245
Cost of assembly 20 25 40
Refer to the Joyner Products information above. Which bench(es) should be assembled before they are sold to retailers?
A. Small and medium
B. Medium and large
C. Small and large
D. Small, medium, and large
56. Joyner Products

each table:
Small Medium Large

Refer to the Joyner Products information above. What is the maximum amount of increase in net income from further processing?
A. $3,625
B. $2,625
C. $6,625
D. $4,000
57. Serenity Garden Inc.
Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company
makes is unpainted gnome statues that come in three sizes: small, medium, and large. The company is
considering painting the gnomes. The following information is available regarding unpainted and painted
gnomes:
Small Medium Large

Sales price after painting 47 70 95
Cost of painting 8 9 11
Number sold per year 500 1,000 400
Refer to the Serenity Garden Inc. information above. Which gnomes, if any, should be painted?
A. Small, medium, and large
B. Medium and large
C. Small and medium
D. None should be painted.

gnomes:
Small Medium Large

Refer to the Serenity Garden Inc. information above. What is the maximum amount of increase in net income from further processing?
A. $2,100
B. $2,600
C. $7,600
D. $1,600
59. What is a special order? What factors does a company consider when examining a special order?
60. You overhear the manager of a sign shop say, "I'd never accept a special order! How could you ever make
money selling products below full cost?" Do you agree? Why or why not?
61. List at least two factors that should be considered in a make or buy decision.
62. When are fixed costs relevant in a make or buy decision? Give one example of a relevant fixed cost.
63. Berringer Enterprises manufactures 10 product lines. The following information is available for one of these
product lines:
Sales revenue $50,000

Variable costs 35,000
Contribution margin 15,000
Fixed costs 18,000
Net income $ (3,000)
The company's controller is considering dropping the line because it is unprofitable. The controller believes that if the line is dropped, overall
company profits are guaranteed to increase. However, the managerial accountant says, "That is not necessarily always the case." Do you agree or
disagree with the accountant? Why or why not?
64. Morris Inc. manufactures two products: Widgets and Gizmos. Widgets have a contribution margin per unit
of $30 and require 2 hours of direct labor while Gizmos have a contribution margin per unit of $39 and require
3 hours of direct labor.
A. In the short-run, how should the company choose which product to produce or sell first if direct labor hours are a constraint?
B. Assuming there is sufficient demand for each of these products, which of the above products should the company maximize production of
first? Show calculations to support your answer.
65. Describe the theory of constraints. In doing so, define bottlenecks and throughput.
66. Assuming there is sufficient customer demand either way, how does a company decide whether to sell a
product or to process it further? When should it be processed further?
67. A local skating rink charges each person $5 to skate and another $3 for each skate rental. The rink has
determined that on a daily basis, when 100 tickets are sold, the costs per skater are $.50 for variable costs and
$1 for fixed overhead costs. The rink has the capacity for up to 175 skaters per day. A local kid's day camp has
asked the rink to allow up to 35 children to skate for $2.50 each on July 15. This price would include the cost of
a skate rental. During July, the rink averages 100 skaters per day.
Required:
A. List two qualitative factors that should be considered by the rink before accepting the special order.
B. What are the total relevant costs of accepting the special order?
C. From a quantitative basis, should they accept the special order? By what amount will the rink's net income increase or decrease if they
accept the special order?
68. Quality Products produces and sells screen-printed t-shirts to local organizations. The normal sales price per
shirt is $12. Due to setup costs, they only accept orders of at least 100 shirts. The setup cost per order is $40 and
the variable costs per shirt are $3. Fixed overhead costs per month total $2,000. Quality Products has the
capacity to screen-print as many as 5,000 shirts per month, but is currently producing around 3,000. On May 1,
the company was approached by a local non-profit group who wishes to place a single order for 100 shirts. The
non-profit group has indicated that they can only pay $5 per shirt.
Required:
A. List two qualitative factors that should be considered by Quality Products before accepting the special order.
B. What are the total relevant costs of accepting the special order?
C. From a quantitative basis, should they accept the special order? By what amount will Quality Product's net income increase or decrease if
they accept the special order?
69. American Motors manufactures automobiles. Currently, the company manufactures its own carpet mats with
the following unit cost per set when 25,000 sets are manufactured:

Direct labor 15.00
Variable overhead 5.00
Fixed overhead 10.00
Total $55.00
Another manufacturer has offered to supply American Motors with the mats at a cost of $50.00 per set. If American outsources the making of the
carpet mats, fixed overhead costs are expected to decrease by 80%.
Required:
A. List at least two qualitativefactors that American Motors should consider in this make or buy decision.
B. What are the relevant costs per set of making the carpet mats themselves?
C. What are the relevant costs per set of outsourcing the carpet mats?
D. From a quantitative basis, should they make or buy the carpet mats? By what amount will the company's net income increase or decrease if
they outsource? Show calculations.
70. Ergo Products manufactures a variety of ergonomic household tools including a cordless drill. The cordless
drill comes with a battery recharger. Currently, the company manufactures its own recharger for the drill with
the following unit costs:

Direct labor $3.00
In addition, when 5,000 rechargers are produced each year, Ergo applies $2 of fixed overhead costs to each recharger. Another manufacturer has
offered to supply Ergo with a recharger at a cost of $8 each. If Ergo accepts the offer, 80% of the fixed overhead allocated to the rechargers will be
avoidable.
Required:
A. List at least two qualitative factors that Ergo Products should consider in this make or buy decision.
B. What is the relevant cost of each recharger if they make it themselves?
C. What is the relevant cost of each recharger if they outsource?
D. From a quantitative basis, should they make or buy the rechargers? By what amount will the company's net income increase or decrease if
they outsource?
71. Kane Manufacturing has three product lines: A, B, and C. The following information is available for each
product line:
A B C Total
Sales $600,000 $450,000 $300,000 $1,350,000
Variable costs 200,000 150,000 230,000 580,000
Fixed costs 75,000 60,000 85,000 220,000
Net income $325,000 $240,000 $ (15,000) $550,000
Management is considering dropping product line C.
Required:
A. What is one qualitative factor that Kane should consider before dropping product line C?
B. If it is determined that all of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it
were dropped?
C. If it is determined that none of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if
it were dropped?
D. If it is determined that half of product line C's fixed costs are avoidable, what would be the effect on the company's overall net income if it
were dropped?
72. Castleberry Products manufactures three product lines: A, B, and C. The following information is available
for each product line:
A B C Total
Sales $500,000 $350,000 $400,000 $1,250,000
Variable costs 175,000 240,000 200,000 615,000
Fixed costs 120,000 120,000 100,000 340,000
Net income $205,000 $ (10,000) $100,000 $ 295,000
Management is considering dropping product line B.
Required:
A. What is one qualitative factor that Castleberry should consider before dropping product line B?
B. If it is determined that all of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income if it
were dropped?
C. If it is determined that none of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income if
it were dropped?
D. If it is determined that $80,000 of product line B's fixed costs are avoidable, what would be the effect on the company's overall net income
if it were dropped?
73. Grissom Products installs standard and deluxe storage sheds. Selected data related to each product is as
follows:
Standard Deluxe
Sales price per unit $2,000 $4,000
Direct labor hours per unit 4 hours 6 hours
Most of the installation process of the sheds is done using manual labor. There are a maximum of 24,000 direct labor hours available each year.
Required:
A. If there is unlimited demand for both products, how many of each type of shed should be installed in order to maximize profits?
B. If the company believes that there is sufficient demand for up to 4,000 standard and 2,500 deluxe sheds each year, how many of each type
should be installed in order to maximize profits?
74. Zing Inc. produces both soft and firm twin-size mattresses. Selected data related to each product is as
follows:
Soft Firm
Sales price per unit $400 $500
Direct materials per unit 95 110
Direct labor per unit 35 55
Variable overhead per unit 15 20
Direct labor hours per unit 30 minutes 45 minutes
Most of the stuffing process is done by hand. There are a maximum of 2,400,000 direct labor minutes available each year.
Required:
A. If there is unlimited demand for both products, how many of each type of mattress should be produced in order to maximize profits?
B. If the company believes that there is sufficient demand for up to 35,000 soft and 33,000 firm mattresses each year, how many of each type
should be installed in order to maximize profits?
75. Sugarhill Products makes a wood product in three sizes: small, medium, and large. Currently, the company
does not stain any of the products, but market research has indicated that they can be sold with or without a
finishing stain. The following information is available:
Small Medium Large

Initial sales price $1,500 $2,300 $4,000
Initial cost 500 800 1,300
Sales price after staining 1,650 2,400 4,400
Number sold per year 300 300 150
Required:
A. Which products should be stained? Support your answer with calculations.
B. If all the products are stained, what is the overall effect on net income? Support your answer with calculations.
Chapter 7--Relevant Costs and Product Planning Decisions Key
1. Which of the following statements is true regarding special order decisions?

A. Special order decisions are long-run decisions.
B. Whether or not the company has excess capacity is seldom a consideration for special order decisions.
C. Both quantitative and qualitative impacts should be considered.
D. The sales price of a special order should never be below the price offered to regular customers.
2. Which of the following would not be a factor in the consideration of whether or not a special order should be
accepted?
A. Excess capacity
B. Variable costs
C. Sunk costs
D. Qualitative factors
3. Which of the following would not be a factor in the consideration of whether or not a special order is
accepted or not?
A. Variable costs
B. Avoidable fixed costs
C. Sales price of the special order
D. Unavoidable fixed costs
4. Which of the following types of costs should always be considered in special order decisions?
B. Relevant costs
C. Sunk costs
D. Fixed costs
5. Which of the following will always be considered in special order decisions?

B. Fixed costs
C. Sunk costs
D. Excess capacity
6. A local science museum normally sells tickets to its museum for $5 each. The daily maximum capacity of the
museum is 1,000 visitors. At the maximum capacity, fixed costs are $2 per visitor and variable costs are $1.50
per visitor. A local school group has approached the museum wishing to purchase 50 special passes at a cost of
$2.50 each. Assuming the museum has excess capacity, if the special order were accepted, net income would:
A. increase by $50.00.
D. decrease by $50.00.
the fair next week and wishes to purchase 50 snow cones for $.25 each. The vendor can sell as many as 400
snow cones per day. If the special order were accepted, net income would:
A. not change.
D. increase by $7.50.
the fair next week and wishes to purchase 50 snowcones for $.25 each. The vendor can sell as many as 400
snowcones per day. What is the minimum price the vendor should charge for the snowcones?
A. $ .50
B. $ .25
C. $ .10
D. $ .75
9. Preston Wade

Direct labor $15.00
Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery to purchase 40 birdhouses for a price
of $80 each. The nursery wishes to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special
engraving tool at a cost of $250. If Preston accepts the special order, net income will increase by:
A. $1,050
B. $1,750
C. $2,000
D. $3,200
10. Preston Wade

Direct labor $15.00
Refer to the Preston Wade information above. Preston has received a special order from a local plant nursery for 40 birdhouses. The nursery wishes
to have the birdhouses engraved with their own logo, therefore, the order would require the rental of a special engraving tool at a cost of $250.
Preston requires a minimum $2,500 profit on any special order. The minimum price per birdhouse that Preston should charge the nursery is:
A. $65.00.
B. $98.75.
C. $95.00.
D. $145.00.
11. JNR Products produces and sells plastic soda cups with specialized logos on the front. They sell the cups in
batches of 500 for $125 per batch. The company has the capacity to produce 100 batches per month but
averages much less. When 75 batches are sold a month, each batch has $40 worth of variable costs and $5 worth
of fixed overhead costs allocated to it. The company has been approached by a local fireman's association who
wishes to purchase three batches of cups for $50 per batch. If the special order were accepted, net income
would:
A. increase by $10.
B. decrease by $225.
C. increase by $15.
D. increase by $30.
12. Collegiate Products produces and sells padded stadium seats emblazoned with a university logo. The
company has the capacity to produce as many as 6,000 seats per month but consistently averages much less.
When 4,500 seats are produced, each seat has $5 of variable costs and $2 of fixed overhead costs allocated to it.
The seats typically sell for $12 each. The company has been approached by a small college who wishes to
purchase 500 seats for special alumni at a price of $5 per seat. If the special order were accepted, net income
would:
D. not change.
13. Which of the following costs is least likely to be relevant in deciding whether to accept a special order?
A. Variable direct labor costs
B. Variable selling costs
C. Fixed manufacturing overhead
D. Variable packaging and shipping costs
14. Vertical integration:

A. is achieved when a company acquires many of its competitors.
B. is accomplished when a company is involved in multiple steps in the value chain.
C. is rarely attempted due to the risks involved.
D. ensures that the highest quality products are produced at the lowest possible price.
15. When are fixed costs relevant in a make or buy decision?

A. Fixed costs are never relevant to the decision.
B. Fixed costs are relevant when they differ among alternatives.
C. Fixed costs are always relevant to the decision.
D. Fixed costs are relevant when they exceed variable costs.
16. Which of the following is not a consideration associated with outsourcing?

A. The effect on employees.
B. The effect on vertical integration.
C. The effect on unavoidable fixed costs.
D. The effect on variable costs.
17. Which of the following statements is true when a company is considering whether to make or buy a
component of a product that it currently manufactures?
A. If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally.
B. If the current fixed overhead is avoidable when outsourcing, the product should be outsourced.
C. If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should
be outsourced.
D. If the cost of outsourcing is greater than the direct materials cost of making internally, the product should
continue to be made internally.
18. Speed Quest Inc. manufactures speed boats. Currently, the company manufactures its own engine for the
boats at the following unit costs:

Direct labor $40.00
Another manufacturer has offered to supply Speed Quest with the engine at a cost of $85 each. Speed Quest currently makes 1,000 boats annually. If
Speed Quest accepts the offer, what will be the short-term impact on net income?
A. Decrease of $5,000.
B. Increase of $15,000.
C. Decrease of $85,000.
D. Increase of $20,000.
19. Quinton Products manufactures digital cameras. Currently, the company manufactures its own carrying case
for the cameras at the following unit costs:

Direct labor $2.00
Another manufacturer has offered to supply Quinton with the case at a cost of $6 each. Quinton currently makes 9,000 cases annually. If Quinton
accepts the offer, what will be the short-term impact on net income?
A. No impact on net income.
B. Decrease by $9,000.
C. Increase by $9,000.
D. Decrease by $18,000.

Refer to the Averette & Averette information above. What are Averette & Averette's total relevant costs to
make the dentures themselves?
A. $300
B. $400
C. $415
D. $350
Refer to the Averette & Averette information above. If Averette & Averette outsources the making of dentures,
the net income will:

Direct materials $5
Direct labor 5
Variable overhead 2
Fixed overhead 7
Refer to the Henderson Manufacturing Inc. information above. What are the relevant costs per unit of Henderson manufacturing the motors
themselves?
A. $15.50
B. $15.20
C. $19.00
D. $14.00

Direct materials $5
Direct labor 5
Variable overhead 2
Fixed overhead 7
Refer to the Henderson Manufacturing Inc. information above. If Henderson accepts the offer to purchase 6,000 motors from Plymouth, the net
income will:
D. increase by $9,000.

are as follows:
Direct materials $6
Direct labor 8
Variable overhead 7
Fixed overhead 9
Refer to the Compton Products Inc. information above. What are the relevant costs per unit of Compton making the motors themselves?
A. $21.00
B. $23.25
C. $27.75
D. $30.00

are as follows:
Direct materials $6
Direct labor 8
Variable overhead 7
Fixed overhead 9
Refer to the Compton Products Inc. information above. If Compton accepts the offer to purchase 10,000 motors from McClintock, the net income
will:
A. increase by $27,500.
B. decrease by $17,500.
26. In the decision on whether or not to drop an unprofitable product line, the product line will most likely be
dropped if:
A. all of the product line's fixed costs are unavoidable.
B. the product line's total fixed costs are less than the contribution margin lost from dropping the product line.
C. the contribution margin lost from dropping the product line is less than the fixed costs avoided from
D. the contribution margin lost from dropping the product line is more than the fixed costs avoided from
27. A particular product line should not be dropped if:

A. its total fixed costs are more than its contribution margin.
B. its avoidable fixed costs are less than its contribution margin.
C. its unavoidable fixed costs are more than its contribution margin.
D. its variable costs are more than its fixed costs.
28. Laurel Inc. has three product lines: A, B, and C.
A B C Total
Sales $20,000 $35,000 $22,000 $77,000
Variable costs 8,000 10,000 14,000 32,000
Fixed costs 4,000 11,000 9,000 24,000
Net income $ 8,000 $14,000 $ (1,000) $21,000
Management is considering dropping product line C. If it is discontinued, one-half of its fixed costs can be avoided. The discontinuation of product
line C would:
29. Tremaine Inc. has three product lines: A, B, and C.
A B C Total
Sales $55,000 $90,000 $95,000 $240,000
Variable costs 37,000 40,000 45,000 122,000
Fixed costs 23,000 20,000 30,000 73,000
Net income $(5,000) $30,000 $20,000 $ 45,000
Management is considering dropping product line A. If it is discontinued, $14,000 of its fixed costs can be avoided. The discontinuation of product
line A would:
30. Carlton Products has three product lines: A, B, and C.
A B C Total
Sales $500,000 $550,000 $700,000 $1,750,000
Variable costs 280,000 420,000 300,000 1,000,000
Fixed costs 100,000 140,000 150,000 390,000
Net income $120,000 $ (10,000) $250,000 $ 360,000
Management is considering dropping product line B. If it is discontinued, all of its fixed costs can be avoided. The discontinuation of product line B
would:
A. decrease net income $10,000.
B. increase net income $140,000.
C. decrease net income $130,000.
D. increase net income $10,000.
31. Paxton Products has three product lines: A, B, and C.
A B C Total
Sales $90,000 $150,000 $200,000 $440,000
Variable costs 50,000 120,000 100,000 270,000
Fixed costs 15,000 40,000 50,000 105,000
Net income $25,000 $(10,000) $ 50,000 $ 65,000
Management is considering dropping product line B. In order for the dropping of product line B to not cause an overall decrease in profits, product
line B's avoidable fixed costs should be at least:
A. $40,000.
B. $30,000.
C. $10,000.
D. $70,000.
32. Which of the following statements regarding resource utilization is not true?
A. Resource utilization decisions are usually short-term in nature.
B. Resource utilization decisions require the identification of a constraint.
C. Resource utilization decisions relates to an analysis of which fixed costs are unavoidable.
D. Resource utilization decisions require managers to compute a product's contribution margin.
33. Which of the following is the least likely to be a consideration in a resource utilization decision?
A. Shelf space
B. Direct labor hours
C. Machine time
D. Fixed costs
34. In resource utilization decisions, managers should:

A. minimize the contribution margin per unit.
B. minimize the use of the scarce resource.
C. maximize the contribution margin per unit of scarce resource.
D. maximize the contribution margin per unit.
35. Decker Products

as follows:
Standard Deluxe
Refer to the Decker Products information above. What is the contribution margin per unit of limited resource for each type of set?
A. Standard: $125.00 Deluxe: $100.00
B. Standard: $225.00 Deluxe: $250.00
C. Standard: $450.00 Deluxe: $700.00
D. Standard: $112.50 Deluxe: $ 87.50
36. Decker Products

as follows:
Standard Deluxe
style, how many of which kind(s) of wooden swing set(s) should be produced in order to maximize profits?
A. 2,500 standard sets
B. 1,250 deluxe sets
C. 833 standard sets and 833 deluxe sets
D. 1,500 standard sets and 1,250 deluxe sets
37. Decker Products

as follows:
Standard Deluxe
style, what is the maximum total contribution margin the company could have?
A. $ 875,000
B. $ 281,250
C. $1,125,000
D. $1,750,000

Standard Deluxe
Refer to the Kellerman Detailing Service information above. There is a maximum of 4,050 direct labor hours available each year. If demand were
equally strong for both packages and the company could sell an unlimited number of either package, how many of which kind(s) of package(s)
should be sold in order to maximize profits?
A. 1,400 standard
B. 1,075 deluxe
C. 1,400 standard and 1,075 deluxe
D. 810 standard and 810 deluxe
Standard Deluxe
Management believes that the demand for both the standard and deluxe detailing is limited to 1,000 each per year. How many standard and deluxe
detailing jobs should be sold in the upcoming year in order to maximize profits?
A. Standard: 900 Deluxe: 750
B. Standard: 100 Deluxe: 1,000
C. Standard: 1,400 Deluxe: 1,000
D. Standard: 450 Deluxe: 900

Standard Deluxe
Management believes that the demand for both the standard and deluxe detailing is limited to 1,000 each per year. If the company maximizes profits,
what is the maximum contribution margin the company could have in the upcoming year?
A. $ 67,500
B. $ 60,000
C. $106,000
D. $ 60,750
Direct labor 20 40
Machine hours 2 3
Refer to the Mountaineer Products information above. In order to maximize profits, how many of each type of tent should be produced?
A. Single-wall: 3,000 Double-wall: 1,000
B. Single-wall: 0 Double-wall: 3,000
C. Single-wall: 1,800 Double-wall: 1,800
D. Single-wall: 1,500 Double-wall: 4,000

Direct labor 20 40
Machine hours 2 3
Refer to the Mountaineer Products information above. If the company produces in order to maximize its profits, what would be the contribution
margin for the upcoming year?
A. $232,500
B. $382,500
C. $705,000
D. $855,000
43. Tilton Food Warehouse Club sells food and other items in bulk to its members. Tilton is very selective in
the products it sells because of limited shelf space. It has been asked by a canned vegetables manufacturer to
consider adding three of its canned food items. The following information is available regarding each of the
possible canned food items:
Item #1 Item #2 Item #3

Sales price per unit $3.50 $4.50 $7.00
Cost to purchase 1.25 2.00 3.00
Units per foot of shelf space 3 2 1
Assuming that there is unlimited demand for all items, if Tilton has 15 feet of shelf space available, which of the following statements is true if they
wish to maximize profits?
A. Tilton should sell only item #1.
B. Tilton should sell only item #2.
C. Tilton should sell only item #3.
D. Tilton should sell an equal amount of each item.
44. If a company is faced with a limited resource, which of the following is not a feasible option for alleviating
the constraint?
A. Focusing on products that require less use of the resource.
B. Increasing the capacity of the limited resource.
C. Reducing the use of the resource in production.
D. Increasing the capacity of an underutilized resource.
45. The theory of constraints:

A. is a management tool used to determine whether or not a company should accept a special order.
B. helps in identifying the bottlenecks in a production process.
C. helps in estimating the fixed overhead costs in a production process.
D. is a management tool used for deciding whether a product should be sold "as is" or processed further.
46. Which of the following is most likely to represent a bottleneck?

A. A production machine that is underutilized.
B. A workstation that requires significant supervision.
C. A production machine that has limited capacity.
D. An employee who has one hour of idle time each day.
47. In the production process, bottlenecks:

A. maximize profits.
B. maximize the use of scarce resources.
C. limit throughput.
D. minimize the total cost of a product.
48. In deciding whether to sell a product or to process it further, which of the following pieces of information
would not be relevant to the decision?
A. Costs of further processing.
B. Costs incurred up to the decision point.
C. Sales price if processed further.
D. Customer demand with further processing.
49. In deciding whether to sell a product or to process it further, which of the following costs are relevant to the
decision?
A. Material costs incurred up to the decision point.
B. Costs incurred to process further.
C. Overhead costs incurred up to the decision point.
D. Direct materials and direct labor costs only.
50. In a sell or process further decision, if the incremental revenue of additional processing is greater than the
incremental cost of additional processing, then:
A. it is less profitable to process further.
B. it is more profitable to process further.
C. total fixed costs have increased.
D. total product costs have decreased.
51. Carolina Potato Inc. currently sells cut sweet potatoes for $.85 per can. The cost of producing the sweet
potatoes is $.18 per can. Carolina Potato is considering starting a line of mashed sweet potatoes. The additional
processing costs would be $.06 per can and each can would sell for $.95. Which of the following pieces of
information is not relevant to the decision to sell or process further?
A. $.06 additional processing cost
B. $.18 production cost
C. $.95 sales price
D. demand for pureed sweet potatoes
52. Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag
of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by
dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the
chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags of either type of cookie per
year, which of the following statements is true if she chooses to process the cookies further?
A. Net income would increase by $2,250 per year.
B. Net income would decrease by $2,500 per year.
C. Net income would decrease by $250 per year.
D. Net income would increase by $15,250 per year.
Small Medium Large

Refer to the Wright Manufacturing information above. Which table(s) should be processed further?
A. Small and medium tables
B. Medium and large tables
C. Large tables
D. Small, medium, and large tables

Small Medium Large

Refer to the Wright Manufacturing information above. What is the maximum amount of increase in net income from further processing?
A. $81,125
B. $ 5,525
C. $82,125
D. $ 5,625
55. Joyner Products
each table:
Small Medium Large

Refer to the Joyner Products information above. Which bench(es) should be assembled before they are sold to retailers?
A. Small and medium
B. Medium and large
C. Small and large
D. Small, medium, and large
56. Joyner Products

each table:
Small Medium Large

Refer to the Joyner Products information above. What is the maximum amount of increase in net income from further processing?
A. $3,625
B. $2,625
C. $6,625
D. $4,000
gnomes:
Small Medium Large

Refer to the Serenity Garden Inc. information above. Which gnomes, if any, should be painted?
A. Small, medium, and large
B. Medium and large
C. Small and medium
D. None should be painted.

gnomes:
Small Medium Large

Refer to the Serenity Garden Inc. information above. What is the maximum amount of increase in net income from further processing?
A. $2,100
B. $2,600
C. $7,600
D. $1,600
59. What is a special order? What factors does a company consider when examining a special order?
A special order is typically a one-time offer received from a party that is not a usual customer. It often includes
a sales price that is below the normal price charged to typical customers. Factors to be considered include
whether the company has excess capacity, whether the order will interfere with regular operations, whether
relevant costs associated with the order will be covered by the lower sales price, and qualitative factors such as
possible reactions from regular customers who are paying a higher sales price.
60. You overhear the manager of a sign shop say, "I'd never accept a special order! How could you ever make
money selling products below full cost?" Do you agree? Why or why not?
Full cost includes an allocation of fixed overhead. After the break-even point, fixed costs have been covered
and any sales price in excess of variable cost will provide additional net income. Thus, after break-even, any
special orders with positive contribution margin will increase net income and should be considered for
acceptance in the short run.
61. List at least two factors that should be considered in a make or buy decision.
· Are the relevant costs of buying the item lower than the relevant costs of making the item internally?
· Can the supplier provide a sufficient quantity to meet the company's current and future needs?
· Do the supplier's items meet product and quality specifications?
· Is the supplier reliable?
62. When are fixed costs relevant in a make or buy decision? Give one example of a relevant fixed cost.
Fixed costs are relevant to a decision when they differ among alternatives or choices. For example, if a fixed
cost such as rent could be eliminated if a product were purchased but would be incurred when the item was
made internally, the cost is relevant.
63. Berringer Enterprises manufactures 10 product lines. The following information is available for one of these
product lines:
Sales revenue $50,000

Variable costs 35,000
Contribution margin 15,000
Fixed costs 18,000
Net income $ (3,000)
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spake beseechingly and passionately as if to that other youth, and
implored him to break not the heart of a poor simple shepherdess
who was willing to kiss his feet.
Neither the father of poor Amy nor Walter Harden had known
before that she had ever seen young George Elliot—but they soon
understood, from the innocent distraction of her speech, that the
noble boy had left pure the Lily he loved, and Walter said that it
belonged not to that line ever to enjure the helpless. Many a pang it
gave him, no doubt, to think that his Amy’s heart, which all his life-
long tenderness could not win, had yielded itself up in tumultuous
joy to one—two—three meetings of an hour, or perhaps only a few
minutes, with one removed so high and so far from her humble life
and all its concerns. These were cold, sickening pangs of humiliation
and jealousy, that might, in a less generous nature, have crushed all
love. But it was not so with him; and cheerfully would Walter Harden
have taken the burning fever into his own veins, so that it could have
been removed from hers—cheerfully would he have laid down his
own manly head on that pillow, so that Amy could have lifted up her
long raven tresses, now often miserably dishevelled in her raving,
and, braiding them once more, walk out well and happy into the
sunshine of the beautiful day, rendered more beautiful still by her
presence. Hard would it have been to have resigned her bosom to any
human touch; but hideous seemed it beyond all thought to resign it
to the touch of death. Let heaven but avert that doom, and his
affectionate soul felt that it could be satisfied.
Out of a long deep trance-like sleep Amy at last awoke, and her
eyes fell upon the face of Walter Harden. She regarded long and
earnestly its pitying and solemn expression, then pressed her hand to
her forehead and wept. “Is my father dead and buried—and did he
die of grief and shame for his Amy? Oh! that needed not have been,
for I am innocent. Neither, Walter, have I broken, nor will I ever
break, my promise unto thee. I remember it well—by the Bible—and
yon setting sun. But I am weak and faint. Oh! tell me, Walter! all that
has happened! Have I been ill—for hours—or for days—or weeks—or
months? For that I know not,—so wild and so strange, so sad and so
sorrowful, so miserable and so wretched, have been my many
thousand dreams!”
There was no concealment and no disguise. Amy was kindly and
tenderly told by her father and her brother all that she had uttered,
as far as they understood it, during her illness. Nor had the innocent
creature anything more to tell. Her soul was after the fever calm,
quiet, and happy. The form, voice, and shape of that beautiful youth
were to her little more now than the words and the sights of a dream.
Sickness and decay had brought her spirit back to all the humble and
tranquil thoughts and feelings of her lowly life. In the woods, and
among the hills, that bright and noble being had for a time touched
her senses, her heart, her soul, and her imagination. All was new,
strange, stirring, overwhelming, irresistible, and paradise to her
spirit. But it was gone; and might it stay away for ever: so she prayed,
as her kind brother lifted up her head with his gentle hand, and laid
it down as gently on the pillow he had smoothed. “Walter! I will be
your wife! for thee my affection is calm and deep,—but that other—
oh! that was only a passing dream!” Walter leaned over her, and
kissed her pale lips. “Yes! Walter,” she continued, “I once promised
to marry none other, but now I promise to marry thee; if indeed God
will forgive me for such words, lying as I am, perhaps, on my
deathbed. I utter them to make you happy. If I live, life will be dear
to me only for thy sake; if I die, walk thou along with my father at the
coffin’s head, and lay thine Amy in the mould. I am the Lily of
Liddisdale,—you know that was once the vain creature’s name!—and
white, pale, and withered enough indeed is, I trow, the poor Lily
now!”
Walter Harden heard her affectionate words with a deep delight,
but he determined in his soul not to bind Amy down to these
promises, sacred and fervent as they were, if, on her complete
recovery, he discovered that they originated in gratitude, and not in
love. From pure and disinterested devotion of spirit did he watch the
progress of her recovery, nor did he ever allude to young Elliot but in
terms of respect and admiration. Amy had expressed her surprise
that he had never come to inquire how she was during her illness,
and added with a sigh, “Love at first sight cannot be thought to last
long. Yet surely he would have wept to hear that I was dead.” Walter
then told her that he had been hurried away to France the very day
after she had seen him, to attend the deathbed of his father, and had
not yet returned to Scotland; but that the ladies of the Priory had
sent a messenger to know how she was every day, and that to their
kindness were owing many of the conveniences she had enjoyed.
Poor Amy was glad to hear that she had no reason to think the noble
boy would have neglected her in her illness; and she could not but
look with pride upon her lover, who was not afraid to vindicate the
character of one who, she had confessed, had been but too dear to
her only a few weeks ago. This generosity and manly confidence on
the part of her cousin quite won and subdued her heart, and Walter
Harden never approached her now without awakening in her bosom
something of that delightful agitation and troubled joy which her
simple heart had first suffered in the presence of her young, noble
lover. Amy was in love with Walter almost as much as he was with
her, and the names of brother and sister, pleasant as they had ever
been, were now laid aside.
Amy Gordon rose from her sickbed, and even as the flower whose
name she bore, did she again lift up her drooping head beneath the
dews and the sunshine. Again did she go to the hillside, and sit and
sing beside her flock. But Walter Harden was oftener with her than
before, and ere the harvest moon should hang her mild, clear,
unhaloed orb over the late reapers on the upland grain-fields, had
Amy promised that she would become his wife. She saw him now in
his own natural light—the best, the most intelligent, the most
industrious, and the handsomest shepherd over all the hills; and
when it was known that there was to be a marriage between Walter
Harden and Amy Gordon, none felt surprised, although some,
sighing, said it was seldom, indeed, that fortune so allowed those to
wed whom nature had united.
The Lily of Liddisdale was now bright and beautiful as ever, and
was returning homewards by herself from the far-off hills during one
rich golden sunset, when, in a dark hollow, she heard the sound of
horses’ feet, and in an instant young George Elliot was at her side.
Amy’s dream was over—and she looked on the beautiful youth with
an unquaking heart. “I have been far away, Amy,—across the seas.
My father—you may have heard of it—was ill, and I attended his bed.
I loved him, Amy—I loved my father—but he is dead!” and here the
noble youth’s tears fell fast. “Nothing now but the world’s laugh
prevents me making you my wife—yes, my wife, sweetest Lily; and
what care I for the world? for thou art both earth and heaven to me.
The impetuous, ardent, and impassioned boy scarcely looked in
Amy’s face; he remembered her confusion, her fears, her sighs, her
tears, his half-permitted kisses, his faintly repelled embraces, and all
his suffered endearments of brow, lip, and cheek, in that solitary dell;
so with a powerful arm he lifted her upon another steed, which, till
now, she had scarcely observed; other horsemen seemed to the
frightened, and speechless, and motionless maiden to be near; and
away they went over the smooth turf like the wind, till her eyes were
blind with the rapid flight, and her head dizzy. She heard kind words
whispering in her ear; but Amy, since that fever, had never been so
strong as before, and her high-blooded palfrey was now carrying her
fleetly away over hill and hollow in a swoon.
At last she seemed to be falling down from a height, but softly, as if
borne on the wings of the air; and as her feet touched the ground, she
knew that young Elliot had taken her from that fleet courser, and,
looking up, she saw that she was in a wood of old shadowy trees of
gigantic size, perfectly still, and far away from all known dwellings
both on hill and plain. But a cottage was before her, and she and
young Elliot were on the green in its front. It was thickly covered
with honeysuckle and moss-roses that hung their beautiful full-
blown shining lamps high as the thatched roof; and Amy’s soul
sickened at the still, secluded, lovely, and lonely sight. “This shall be
our bridal abode,” whispered her lover into her ear, with panting
breath. “Fear me not—distrust me not; I am not base, but my love to
thee is tender and true. Soon shall we be married—ay, this very
evening must thou be mine; and may the hand that now clasps thy
sweet waist wither, and the tongue that woos thee be palsied, if ever I
cease to love thee as my Amy—my Lily—my wedded wife!”
The wearied and half-fainting maiden could as yet make no reply.
The dream that she had believed was gone for ever now brightened
upon her in the intense light of reality, and it was in her power to
become the wife of him for whom she had, in the innocence and
simplicity of her nature, once felt a consuming passion that had
brought her to the brink of the grave. His warm breath was on her
bosom; words charged with bewitching persuasion went thrilling
through her heartstrings; and if she had any pride (and what human
heart has it not?) it might well mingle now with love, and impel her
into the embrace that was now open to clasp her close to a burning
heart.
A stately and beautiful lady came smiling from the cottage door,
and Amy knew that it was the sister of Elliot, and kneeled down
before her. Last time the shepherdess had seen that lady, it was
when, with a fearful step, she took her baskets into the hall, and
blushing, scarcely lifted up her eyes, when she and her high-born
sisters deigned to commend her workmanship, and whisper to each
other that the Lily of Liddisdale deserved her name. “Amy,” said she,
with a gentle voice, as she took her hand, “Amy Gordon! my brother
loves you; and he has won me to acknowledge you as my sister. I can
deny my brother nothing; and his grief has brought low the pride—
perhaps the foolish pride—of my heart. Will you marry him, Amy?
Will you, the daughter of a poor shepherd, marry the young heir of
the Priory, and the descendant, Amy, of a noble race? Amy, I see that
thou art beautiful; I know that thou art good; may God and my
mother forgive me this, but my sister must thou be; behold my
brother is at his shepherdess’s feet!”
Amy Gordon had now nothing to fear. That sweet, young, pure,
noble lady was her friend; and she felt persuaded now that in good
truth young Elliot wished to make her his wife. Might she indeed live
the Lady of the Priory—be a sister to these beautiful creatures—dwell
among those ancient woods, and all those spacious lawns and richest
gardens; and might she be, not in a dream, but in living reality, the
wife of him on whose bosom her heart had died with joy in that
lonely dell, and love him and yield him her love even unto the very
hour till she was dead? Such changes of estate had been long ago,
and sung of in many a ballad; and was she to be the one maiden of
millions, the one born in hundreds of years, to whom this blessed lot
was to befall? But these thoughts passed on and away like sun-rays
upon a stream; the cloud, not a dark one, of reality returned over her.
She thought of Walter Harden, and in an instant her soul was fixed;
nor from that instant could it be shaken by terror or by love, by the
countenance of death, or the countenance, far more powerful than of
death—that of the youth before her, pale and flushed alternately with
the fluctuations of many passions.
Amy felt in her soul the collected voice, as it were, of many happy
and humble years among her hills, and that told her not to forsake
her own natural life. The flower that lived happily and beautifully in
its own secluded nook, by the side of the lonely tarn or torrent, might
lose much both of its fragrance and its lustre, when transplanted into
a richer soil and more sheltered bed. Could she forget for ever her
father’s ingle—the earthen floor—its simple furniture of day and
night? Could she forget all the familiar places round about the hut
where she was born? And if she left them all, and was taken up even
in the arms of love into another sphere of life, would not that be the
same, or worse than to forget them, and would it not be sacrilege to
the holiness of the many Sabbath nights on which she had sat at her
widowed father’s knees? Yet might such thoughts have been
destroyed in her beating heart by the whispered music of young
Elliot’s eloquent and impassioned voice. But Walter Harden, though
ignorant of her present jeopardy, seemed to stand before her, and
she remembered his face when he sat beside her dying bed, his
prayers over her when he thought she slept, and their oaths of
fidelity mutually sworn before the great God.
“Will you, my noble and honoured master, suffer me, all unworthy
as I am to be yours, to leave your bosom? Sir, I am too miserable
about you, to pretend to feel any offence, because you will not let me
go. I might well be proud of your love, since, indeed, it happens so
that you do love me; but let me kneel down at your beautiful sister’s
feet, for to her I may be able to speak—to you I feel that it may not
be, for humble am I, although unfortunately I have found favour in
your eyes.”
The agitated youth released Amy from his arms, and she flung
herself down upon her knees before that lovely lady.
“Lady! hear me speak—a simple uneducated girl of the hills, and
tell me if you would wish to hear me break an oath sworn upon the
Bible, and so to lose my immortal soul? So have I sworn to be the
wife of Walter Harden—the wife of a poor shepherd; and, lady, may I
be on the left hand of God at the great judgment-day, if ever I be
forsworn. I love Walter Harden. Do you counsel me to break his
kind, faithful heart? Oh, sir—my noble young master! how dare a
creature such as I speak so freely to your beautiful sister? how dare I
keep my eyes open when you are at your servant’s feet? Oh, sir, had I
been born a lady, I would have lived—died for you—gone with you all
over the world—all over the sea, and all the islands of the sea. I
would have sighed, wept, and pined away, till I had won your love,
for your love would have been a blessed thing—that do I well know,
from the few moments you stooped to let your heart beat against the
bosom of a low-born shepherdess. Even now, dearly as I love Walter
Harden, fain would I lay me down and die upon this daisied green,
and be buried beneath it, rather than that poor Amy Gordon should
affect the soul of her young master thus; for never saw I, and never
can I again see, a youth so beautiful, so winning, so overwhelming to
a maiden’s heart, as he before whom I now implore permission to
grovel in the dust. Send me away—spurn me from you—let me crawl
away out of your presence—I can find my way back to my father’s
house.”
It might have been a trying thing to the pride of this high-minded
and high-born youth, to be refused in marriage by the daughter of
one of his poorest shepherds; so would it have been had he loved
less; but all pride was extinguished, and so seemed for ever and ever
the light of this world’s happiness. To plead further he felt was in
vain. Her soul had been given to another, and the seal of an oath set
upon it, never to be broken but by the hand of death. So he lifted her
up in his arms, kissed her madly a hundred times, cheek, brow, neck,
and bosom, and then rushed into the woods. Amy followed him with
her streaming eyes, and then turned again towards the beautiful
lady, who was sobbing audibly for her brother’s sake.
“Oh! weep not, lady! that I, poor Amy Gordon, have refused to
become the wife of your noble brother. The time will come, and soon
too, when he and you, and your fair sisters and your stately mother,
will all be thankful that I yielded not to entreaties that would then
have brought disgrace upon your house! Never—never would your
mother have forgiven you; and as for me, would not she have wished
me dead and buried rather than the bride of her only and darling
son? You know that, simple and innocent as I am, I now speak but
the truth; and how, then, could your noble brother have continued to
love me, who had brought dishonour, and disagreement, and
distraction, among those who are now all so dear to one another? O
yes—yes, he would soon have hated poor Amy Gordon, and, without
any blame, perhaps broken my heart, or sent me away from the
Priory back to my father’s hut. Blessed be God, that all this evil has
not been wrought by me! All—all will soon be as before.”
She to whom Amy thus fervently spoke felt that her words were
not wholly without truth. Nor could she help admiring the noble,
heroic, and virtuous conduct of this poor shepherdess, whom all this
world’s temptations would have failed to lure from the right path.
Before this meeting she had thought of Amy as far her inferior
indeed, and it was long before her proper pride had yielded to the
love of her brother, whose passion she feared might otherwise have
led to some horrible catastrophe. Now that he had fled from them in
distraction, this terror again possessed her, and she whispered it to
the pale, trembling shepherdess.
“Follow him—follow him, gentle lady, into the wood; lose not a
moment; call upon him by name, and that sweet voice must bring
him back. But fear not, he is too good to do evil; fear not, receive my
blessing, and let me return to my father’s hut; it is but a few miles,
and that distance is nothing to one who has lived all her life among
the hills. My poor father will think I have died in some solitary
place.”
The lady wept to think that she, whom she had been willing to
receive as her sister, should return all by herself so many miles at
night to a lonely hut. But her soul was sick with fear for her brother;
so she took from her shoulders a long rich Indian silk scarf of
gorgeous colours, and throwing it over Amy’s figure, said, “Fair
creature and good, keep this for my sake; and now, farewell!” She
gazed on the Lily for a moment in delighted wonder at her graceful
beauty, as she bent on one knee, enrobed in that unwonted garb, and
then, rising up, gathered the flowing drapery around her, and
disappeared.
“God, in His infinite mercy, be praised!” cried Walter Harden, as
he and the old man, who had been seeking Amy for hours all over the
hills, saw the Lily gliding towards them up a little narrow dell,
covered from head to foot with the splendid raiment that shone in a
soft shower of moonlight. Joy and astonishment for a while held
them speechless, but they soon knew all that had happened; and
Walter Harden lifted her up in his arms and carried her home,
exhausted now and faint with fatigue and trepidation, as if she were
but a lamb rescued from a snow-wreath.
Next moon was that which the reapers love, and before it had
waned Amy slept in the bosom of her husband, Walter Harden. Years
passed on, and other flowers beside the Lily of Liddisdale were
blooming in his house. One summer evening, when the shepherd, his
fair wife, and their children were sitting together on the green before
the door, enjoying probably the sight and the noise of the imps much
more then the murmurs of the sylvan Liddal, which perhaps they did
not hear, a gay cavalcade rode up to the cottage, and a noble-looking
young man, dismounting from his horse, and gently assisting a
beautiful lady to do the same, walked up to her whom he had known
only by a name now almost forgotten, and with a beaming smile said,
“Fair Lily of Liddisdale, this is my wife, the lady of the Priory; come—
it is hard to say which of you should bear off the bell.” Amy rose from
her seat with an air graceful as ever, but something more matronly
than that of Elliot’s younger bride; and while these two fair creatures
beheld each other with mutual admiration, their husbands stood
there equally happy, and equally proud—George Elliot of the Priory,
and Walter Harden of the Glenfoot.
THE UNLUCKY PRESENT.
By Robert Chambers, LL.D.
A Lanarkshire minister (who died within the present century) was

one of those unhappy persons who, to use the words of a well-known
Scottish adage, “can never see any green cheese but their een reels.”
He was extremely covetous, and that not only of nice articles of food,
but of many other things which do not generally excite the cupidity
of the human heart. The following story is in corroboration of this
assertion. Being on a visit one day at the house of one of his
parishioners, a poor, lonely widow, living in a moorland part of the
parish, Mr L—— became fascinated by the charms of a little cast-iron
pot, which happened at the time to be lying on the hearth, full of
potatoes for the poor woman’s dinner, and that of her children. He
had never in his life seen such a nice little pot. It was a perfect
conceit of a thing. It was a gem. No pot on earth could match it in
symmetry. It was an object altogether perfectly lovely.
“Dear sake! minister,” said the widow, quite overpowered by the
reverend man’s commendations of her pot; “if ye like the pot sae
weel as a’ that, I beg ye’ll let me send it to the manse. It’s a kind o’
orra pot wi’ us; for we’ve a bigger ane, that we use oftener, and that’s
mair convenient every way for us. Sae ye’ll just tak a present o’t. I’ll
send it ower the morn wi’ Jamie, when he gangs to the schule.”
“Oh,” said the minister, “I can by no means permit you to be at so
much trouble. Since you are so good as to give me the pot, I’ll just
carry it home with me in my hand. I’m so much taken with it, indeed,
that I would really prefer carrying it myself.”
After much altercation between the minister and the widow, on
this delicate point of politeness, it was agreed that he should carry
home the pot himself.
Off, then, he trudged, bearing this curious little culinary article
alternately in his hand and under his arm, as seemed most
convenient to him. Unfortunately, the day was warm, the way long,
and the minister fat; so that he became heartily tired of his burden
before he had got half-way home. Under these distressing
circumstances, it struck him that if, instead of carrying the pot
awkwardly at one side of his person, he were to carry it on his head,
the burden would be greatly lightened; the principles of natural
philosophy, which he had learned at college, informing him, that
when a load presses directly and immediately upon any object, it is
far less onerous than when it hangs at the remote end of a lever.
Accordingly, doffing his hat, which he resolved to carry home in his
hand, and having applied his handkerchief to his brow, he clapped
the pot in inverted fashion upon his head, where, as the reader may
suppose, it figured much like Mambrino’s helmet upon the crazed
capital of Don Quixote, only a great deal more magnificent in shape
and dimensions. There was at first much relief and much comfort in
this new mode of carrying the pot; but mark the result. The
unfortunate minister having taken a by-path to escape observation,
found himself, when still a good way from home, under the necessity
of leaping over a ditch, which intercepted him in passing from one
field to another. He jumped; but surely no jump was ever taken so
completely in, or, at least, into, the dark as this. The concussion
given to his person in descending, caused the helmet to become a
hood: the pot slipped down over his face, and resting with its rim
upon his neck, stuck fast there; enclosing his whole head as
completely as ever that of a new-born child was enclosed by the filmy
bag with which nature, as an indication of future good fortune,
sometimes invests the noddles of her favourite offspring. What was
worst of all, the nose, which had permitted the pot to slip down over
it, withstood every desperate attempt on the part of its proprietor to
make it slip back again; the contracted part or neck of the patera
being of such a peculiar formation as to cling fast to the base of the
nose, although it found no difficulty in gliding along its hypothenuse.
Was ever minister in a worse plight? Was there ever contretemps so
unlucky? Did ever any man—did ever any minister—so effectually
hoodwink himself, or so thoroughly shut his eyes to the plain light of
nature? What was to be done? The place was lonely; the way difficult
and dangerous; human relief was remote, almost beyond reach. It
was impossible even to cry for help. Or, if a cry could be uttered, it
might reach in deafening reverberation the ear of the utterer; but it
would not travel twelve inches farther in any direction. To add to the
distresses of the case, the unhappy sufferer soon found great
difficulty in breathing. What with the heat occasioned by the beating
of the sun on the metal, and what with the frequent return of the
same heated air to his lungs, he was in the utmost danger of
suffocation. Everything considered, it seemed likely that, if he did
not chance to be relieved by some accidental wayfarer, there would
soon be Death in the Pot.
The instinctive love of life, however, is omni-prevalent: and even
very stupid people have been found when put to the push by strong
and imminent peril, to exhibit a degree of presence of mind, and
exert a degree of energy, far above what might have been expected
from them, or what they have ever been known to exhibit or exert
under ordinary circumstances. So it was with the pot-ensconced
minister of C——. Pressed by the urgency of his distresses, he
fortunately recollected that there was a smith’s shop at the distance
of about a mile across the fields, where, if he could reach it before the
period of suffocation, he might possibly find relief. Deprived of his
eyesight, he could act only as a man of feeling, and went on as
cautiously as he could, with his hat in his hand. Half crawling, half
sliding, over ridge and furrow, ditch and hedge, somewhat like Satan
floundering over chaos, the unhappy minister travelled, with all
possible speed, as nearly as he could guess in the direction of the
place of refuge. I leave it to the reader to conceive the surprise, the
mirth, the infinite amusement of the smith and all the hangers-on of
the “smiddy,” when, at length, torn and worn, faint and exhausted,
blind and breathless, the unfortunate man arrived at the place, and
let them know (rather by signs than by words) the circumstances of
his case. In the words of an old Scottish song,
Out cam the gudeman, and high he shouted;
Out cam the gudewife, and low she louted;
And a’ the town-neighbours were gathered about it;
And there was he, I trow!
The merriment of the company, however, soon gave way to

considerations of humanity. Ludicrous as was the minister, with such
an object where his head should have been, and with the feet of the
pot pointing upwards like the horns of the great Enemy, it was,
nevertheless, necessary that he should be speedily restored to his
ordinary condition, if it were for no other reason than that he might
continue to live. He was accordingly, at his own request, led into the
smithy, multitudes flocking around to tender him their kindest
offices, or to witness the process of his release; and having laid down
his head upon the anvil, the smith lost no time in seizing and poising
his goodly forehammer.
“Will I come sair on, minister?” exclaimed the considerate man of
iron in at the brink of the pot.
“As sair as ye like,” was the minister’s answer; “better a chap i’ the
chafts than dying for want of breath.”
Thus permitted, the man let fall a hard blow, which fortunately
broke the pot in pieces without hurting the head which it enclosed, as
the cook-maid breaks the shell of the lobster without bruising the
delicate food within. A few minutes of the clear air, and a glass from
the gudewife’s bottle, restored the unfortunate man of prayer; but
assuredly the incident is one which will long live in the memory of
the parishioners.—Edinburgh Literary Journal.
THE SUTOR OF SELKIRK:
A REMARKABLY TRUE STORY.
By one of the Authors of “The Odd Volume.”
Once upon a time, there lived in Selkirk a shoemaker, by name

Rabbie Heckspeckle, who was celebrated both for dexterity in his
trade, and for some other qualifications of a less profitable nature.
Rabbie was a thin, meagre-looking personage, with lank black hair, a
cadaverous countenance, and a long, flexible, secret-smelling nose.
In short, he was the Paul Pry of the town. Not an old wife in the
parish could buy a new scarlet rokelay without Rabbie knowing
within a groat of the cost; the doctor could not dine with the minister
but Rabbie could tell whether sheep’s-head or haggis formed the
staple commodity of the repast; and it was even said that he was
acquainted with the grunt of every sow, and the cackle of every
individual hen, in his neighbourhood; but this wants confirmation.
His wife, Bridget, endeavoured to confine his excursive fancy, and to
chain him down to his awl, reminding him it was all they had to
depend on; but her interference met with exactly that degree of
attention which husbands usually bestow on the advice tendered by
their better halves—that is to say, Rabbie informed her that she knew
nothing of the matter, that her understanding required stretching,
and finally, that if she presumed to meddle in his affairs, he would be
under the disagreeable necessity of giving her a topdressing.
To secure the necessary leisure for his researches, Rabbie was in
the habit of rising to his work long before the dawn; and he was one
morning busily engaged putting the finishing stitches to a pair of
shoes for the exciseman, when the door of his dwelling, which he
thought was carefully fastened, was suddenly opened, and a tall
figure, enveloped in a large black cloak, and with a broad-brimmed
hat drawn over his brows, stalked into the shop. Rabbie stared at his
visitor, wondering what could have occasioned this early call, and
wondering still more that a stranger should have arrived in the town
without his knowledge.
“You’re early afoot, sir,” quoth Rabbie. “Lucky Wakerife’s cock will
no craw for a good half hour yet.”
The stranger vouchsafed no reply; but taking up one of the shoes
Rabbie had just finished, deliberately put it on, and took a turn
through the room to ascertain that it did not pinch his extremities.
During these operations, Rabbie kept a watchful eye on his customer.
“He smells awfully o’ yird,” muttered Rabbie to himself; “ane
would be ready to swear he had just cam frae the plough-tail.”
The stranger, who appeared to be satisfied with the effect of the
experiment, motioned to Rabbie for the other shoe, and pulled out a
purse for the purpose of paying for his purchase; but Rabbie’s
surprise may be conceived, when, on looking at the purse, he
perceived it to be spotted with a kind of earthy mould.
“Gudesake,” thought Rabbie, “this queer man maun hae howkit
that purse out o’ the ground. I wonder where he got it. Some folk say
there are dags o’ siller buried near this town.”
By this time the stranger had opened the purse, and as he did so, a
toad and a beetle fell on the ground, and a large worm crawling out
wound itself round his finger. Rabbie’s eyes widened; but the
stranger, with an air of nonchalance, tendered him a piece of gold,
and made signs for the other shoe.
“It’s a thing morally impossible,” responded Rabbie to this mute
proposal. “Mair by token, that I hae as good as sworn to the
exciseman to hae them ready by daylight, which will no be long o’
coming” (the stranger here looked anxiously towards the window);
“and better, I tell you, to affront the king himsel, than the
exciseman.”
The stranger gave a loud stamp with his shod foot, but Rabbie
stuck to his point, offering, however, to have a pair ready for his new
customer in twenty-four hours; and, as the stranger, justly enough
perhaps, reasoned that half a pair of shoes was of as little use as half
a pair of scissors, he found himself obliged to come to terms, and
seating himself on Rabbie’s three-legged stool, held out his leg to the
Sutor, who, kneeling down, took the foot of his taciturn customer on
his knee, and proceeded to measure it.
“Something o’ the splay, I think, sir,” said Rabbie, with a knowing
air.
No answer.
“Where will I bring the shoon to when they’re done?” asked
Rabbie, anxious to find out the domicile of his visitor.
“I will call for them myself before cock crowing,” responded the
stranger in a very uncommon and indescribable tone of voice.
“Hout, sir,” quoth Rabbie, “I canna let you hae the trouble o’
coming for them yoursel; it will just be a pleasure for me to call with
them at your house.”
“I have my doubts of that,” replied the stranger, in the same
peculiar manner; “and at all events, my house would not hold us
both.”
“It maun be a dooms sma’ biggin,” answered Rabbie; “but noo that
I hae ta’en your honour’s measure——”
“Take your own!” retorted the stranger, and giving Rabbie a touch
with his foot that laid him prostrate, walked coolly out of the house.
This sudden overturn of himself and his plans for a few moments
discomfited the Sutor; but quickly gathering up his legs, he rushed to
the door, which he reached just as Lucky Wakerife’s cock proclaimed
the dawn. Rabbie flew down the street, but all was still; then ran up
the street, which was terminated by the churchyard, but saw only the
moveless tombs looking cold and chill under the grey light of a
winter morn. Rabbie hitched his red nightcap off his brow, and
scratched his head with an air of perplexity.
“Weel,” he muttered, as he retraced his steps homewards, “he has
warred me this time, but sorrow take me if I’m no up wi’ him the
morn.”
All day Rabbie, to the inexpressible surprise of his wife, remained
as constantly on his three-legged stool as if he had been “yirked”
there by some brother of the craft. For the space of twenty-four
hours, his long nose was never seen to throw its shadow across the
threshold of the door; and so extraordinary did this event appear,
that the neighbours, one and all, agreed that it predicted some
prodigy; but whether it was to take the shape of a comet, which
would deluge them all with its fiery tail, or whether they were to be
swallowed up by an earthquake, could by no means be settled to the
satisfaction of the parties concerned.
Meanwhile, Rabbie diligently pursued his employment, unheeding
the concerns of his neighbours. What mattered it to him, that Jenny
Thrifty’s cow had calved, that the minister’s servant, with something
in her apron, had been seen to go in twice to Lucky Wakerife’s, that
the laird’s dairy-maid had been observed stealing up the red loan in
the gloaming, that the drum had gone through the town announcing
that a sheep was to be killed on Friday?—The stranger alone swam
before his eyes; and cow, dairymaid, and drum kicked the beam. It
was late in the night when Rabbie had accomplished his task, and
then placing the shoes at his bedside, he lay down in his clothes, and
fell asleep; but the fear of not being sufficiently alert for his new
customer, induced him to rise a considerable time before daybreak.
He opened the door and looked into the street, but it was still so dark
he could scarcely see a yard before his nose; he therefore returned
into the house, muttering to himself—“What the sorrow can keep
him?” when a voice at his elbow suddenly said—
“Where are my shoes?”
“Here, sir,” said Rabbie, quite transported with joy; “here they are,
right and tight, and mickle joy may ye hae in wearing them, for it’s
better to wear shoon than sheets, as the auld saying gangs.”
“Perhaps I may wear both,” answered the stranger.
“Gude save us,” quoth Rabbie, “do ye sleep in your shoon?”
The stranger made no answer; but, laying a piece of gold on the
table and taking up the shoes, walked out of the house.
“Now’s my time,” thought Rabbie to himself, as he slipped after
him.
The stranger paced slowly on, and Rabbie carefully followed him;
the stranger turned up the street, and the Sutor kept close to his
heels. “’Odsake, where can he be gaun?” thought Rabbie, as he saw
the stranger turn into the churchyard; “he’s making to that grave in
the corner; now he’s standing still; now he’s sitting down. Gudesake!
what’s come o’ him?” Rabbie rubbed his eyes, looked round in all
directions, but, lo and behold! the stranger had vanished. “There’s
something no canny about this,” thought the Sutor; “but I’ll mark the
place at ony rate;” and Rabbie, after thrusting his awl into the grave,
hastily returned home.
The news soon spread from house to house, and by the time the
red-faced sun stared down on the town, the whole inhabitants were
in commotion; and, after having held sundry consultations, it was
resolved, nem. con., to proceed in a body to the churchyard, and
open the grave which was suspected of being suspicious. The whole
population of the Kirk Wynd turned out on this service. Sutors,
wives, children, all hurried pell-mell after Rabbie, who led his
myrmidons straight to the grave at which his mysterious customer
had disappeared, and where he found his awl still sticking in the
place where he had left it. Immediately all hands went to work; the
grave was opened; the lid was forced off the coffin; and a corpse was
discovered dressed in the vestments of the tomb, but with a pair of
perfectly new shoes upon its long bony feet. At this dreadful sight the
multitude fled in every direction, Lucky Wakerife leading the van,
leaving Rabbie and a few bold brothers of the craft to arrange
matters as they pleased with the peripatetic skeleton. A council was
held, and it was agreed that the coffin should be firmly nailed up and
committed to the earth. Before doing so, however, Rabbie proposed
denuding his customer of his shoes, remarking that he had no more
need for them than a cart had for three wheels. No objections were
made to this proposal, and Rabbie, therefore, quickly coming to
extremities, whipped them off in a trice. They then drove half a
hundred tenpenny nails into the lid of the coffin, and having taken
care to cover the grave with pretty thick divots, the party returned to
their separate places of abode.
Certain qualms of conscience, however, now arose in Rabbie’s
mind as to the propriety of depriving the corpse of what had been
honestly bought and paid for. He could not help allowing, that if the
ghost were troubled with cold feet, a circumstance by no means
improbable, he might naturally wish to remedy the evil. But, at the
same time, considering that the fact of his having made a pair of
shoes for a defunct man would be an everlasting blot on the
Heckspeckle escutcheon, and reflecting also that his customer, being
dead in law, could not apply to any court for redress, our Sutor
manfully resolved to abide by the consequences of his deed.
Next morning, according to custom, he rose long before day, and
fell to his work, shouting the old song of the “Sutors of Selkirk” at the
very top of his voice. A short time, however, before the dawn, his
wife, who was in bed in the back room, remarked, that in the very
middle of his favourite verse, his voice fell into a quaver; then broke
out into a yell of terror; and then she heard a noise, as of persons
struggling; and then all was quiet as the grave. The good dame
immediately huddled on her clothes, and ran into the shop, where
she found the three-legged stool broken in pieces, the floor strewed
with bristles, the door wide open, and Rabbie away! Bridget rushed
to the door, and there she immediately discovered the marks of
footsteps deeply printed on the ground. Anxiously tracing them, on—
and on—and on—what was her horror to find that they terminated in
the churchyard, at the grave of Rabbie’s customer! The earth round
the grave bore traces of having been the scene of some fearful
struggle, and several locks of lank black hair were scattered on the
grass. Half distracted, she rushed through the town to communicate
the dreadful intelligence. A crowd collected, and a cry speedily arose
to open the grave. Spades, pickaxes, and mattocks, were quickly put
in requisition; the divots were removed; the lid of the coffin was once
more torn off, and there lay its ghastly tenant, with his shoes
replaced on his feet, and Rabbie’s red night-cap clutched in his right
hand!
The people, in consternation, fled from the churchyard; and
nothing further has ever transpired to throw any additional light
upon the melancholy fate of the Sutor of Selkirk.
ELSIE MORRICE.
From the “Aberdeen Censor.”

Oh, wert thou of the golden-wingèd host,
Who, having clad thyself in human weed,
To earth, from thy prefixèd seat didst post,
And, after short abode, fly back with speed,
As if to show what creatures Heav’n doth breed,
Thereby to set the hearts of men on fire,
To scorn the sordid world, and unto Heav’n aspire?—Milton.
In the neighbourhood of the pleasant village of ——, on the east

coast of Scotland, lived Janet Morrice and her grand-daughter Elsie.
A small cottage, overlaid with woodbine on the exterior, and neat
and clean in the interior, contained this couple; and a small farm
attached to it served to supply all their humble desires. The place was
no doubt agreeable to look on; but it was a pair of bright blue eyes,
some light brown locks, and a sweet and modest face, that drew all
the male visitors to the house of Janet Morrice. Elsie Morrice, her
grandchild, had been left a young orphan to her charge. She was the
only child of an only son, and thus came with a double call on the
feelings of her old grandmother. Dearly was she loved by her, and
well did she deserve it; for a better and a kindlier girl was not in all
the country round. Out of the many young men that paid their
attentions to Elsie, it was soon evident that her favourite was William
Gordon. In his person he had nothing particular to recommend him
above his companions; but there was in him that respectful
demeanour, that eagerness to please, and that happiness in serving
the object of his affections, which the eyes of a young woman can so
soon perceive, and her heart so readily appreciate. In their
dispositions, though not similar, they were drawn to each other. She

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Managerial ACCT2 2nd Edition Sawyers

1. Which of the following statements is true regarding special order decisions?

5. Which of the following will always be considered in special order decisions?

Direct materials $12.00

Direct materials $12.00

14. Vertical integration:

15. When are fixed costs relevant in a make or buy decision?

16. Which of the following is not a consideration associated with outsourcing?

Direct materials $25.00

Direct materials $2.00

20. Averette & Averette

22. Henderson Manufacturing Inc.

23. Henderson Manufacturing Inc.

24. Compton Products Inc.

25. Compton Products Inc.

27. A particular product line should not be dropped if:

28. Laurel Inc. has three product lines: A, B, and C.

29. Tremaine Inc. has three product lines: A, B, and C.

30. Carlton Products has three product lines: A, B, and C.

31. Paxton Products has three product lines: A, B, and C.

34. In resource utilization decisions, managers should:

35. Decker Products

36. Decker Products

37. Decker Products

38. Kellerman Detailing Service

Most of the car detailing is done by hand.

Most of the car detailing is done by hand.

40. Kellerman Detailing Service

Most of the car detailing is done by hand.

42. Mountaineer Products

Item #1 Item #2 Item #3

Units per foot of shelf space 3 2 1

45. The theory of constraints:

46. Which of the following is most likely to represent a bottleneck?

47. In the production process, bottlenecks:

Small Medium Large

Number sold per month 100 300 175

54. Wright Manufacturing

Small Medium Large

Number sold per month 100 300 175

Small Medium Large

Number sold per month 200 175 150

56. Joyner Products

Small Medium Large

Number sold per month 200 175 150

Small Medium Large

Number sold per year 500 1,000 400

58. Serenity Garden Inc.

Small Medium Large

Number sold per year 500 1,000 400

Sales revenue $50,000

Direct materials $25.00

Direct materials $3.00

B. What is the relevant cost of each recharger if they make it themselves?

C. What is the relevant cost of each recharger if they outsource?

Management is considering dropping product line C.

Management is considering dropping product line B.

Small Medium Large

Number sold per year 300 300 150

A. Which products should be stained? Support your answer with calculations.

1. Which of the following statements is true regarding special order decisions?

5. Which of the following will always be considered in special order decisions?

Direct materials $12.00