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0 Requirements 2. The division manager of Division B received the following operating income data for the past year Click the icon to view the

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0 Requirements 2. The division manager of Division B received the following operating income data for the past year Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by $77,000 and decrease fixed selling and administrative expenses by $14,000. a. Prepare a differential analysis to show whether Division B should drop the T205 product line b. What is your recommendation to the manager of Division B? 3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Durant is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: Click the icon to view the Division product data.) After expansion, the factory will have a production capacity of 4.200 machine hours per month. The plant can manufacture either 35 units of K707s or 56 units of G582s per machine hour a. Identify the constraining factor for Division C b. Prepare an analysis to show which product line to emphasize 4. Division D is considering two possible expansion plans Plan A would expand a current product line at a cost of $8,550,000. Expected annual net cash inflows are $1,550,000. With zero residual value at the end of 10 years Under Plan B Division D would begin producing a new product at a cost of nnnnnnn non Print Done i Data Table - Division B of Durant, Inc. Income Statement For the Year Ended December 31, 2018 Product Line T205 B179 Total 300,000 $ 410,000 $ 710.000 Net Sales Revenue Cost of Goods Sold Variable 36,000 250.000 47,000 59,000 83,000 309,000 286,000 106,000 392,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses Variable 14.000 304.000 318,000 66.000 79.000 145.000 T205 B179 Total Net Sales Revenue Cost of Goods Sold: $ 300,000 $ 410,000 $ 710,000 Variable 36,000 250,000 Fixed 47.000 59,000 83,000 309,000 286.000 Total Cost of Goods Sold Gross Profit 106,000 392,000 14.000 304000 318,000 Selling and Administrative Expenses Variable 66,000 58,000 79,000 28.000 145.000 86.000 Fixed Total Selling and Administrative Expenses Operating Income (Loss) 124.000 107 000 231.000 (110,000) 5 197,000 $87,000 np! Print Done ision received the following pering income data for the past year Click the icon to view the lion Bring comedor e manager of the division is surprised that the 1205 product lines to profitable. The contrat droppi 20 product line wildwassed cost of goods sold by S77000 and decreased ting and admite expenses by $14.000 Prepare a differentialysis to show whether we should be the 205 in we Ep Choose to enter terreno

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