07 One of Simplex Company's products has a contribution margin of $45,000 and fixed costs totaling $55,000. If the product is dropped, $37,500 of the fixed costs will continue unchanged. As a result of dropping the product, the company's net operating Income should eBook Multiple Choice Print Increase by $7,500 increase by $27.500 decrease by $27,500 decrease by $45,000 6 Ferguson Company manufactures 4,700 parts per year, the parts are used in the assembly of one of the company's products. The unit product cost of these parts is: Variable manufacturing cost s 3270 20.10 Fixed manufacturing cost eBook Print Unit product cost $52.80 The part can be purchased from an outside supplier at $40.70 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: Multiple Choice $25,380 decrease $25.380 Increase $6.110 Increase 56,110 decrease 7 Halley Company produces 2,300 parts each year that are used in one of its products. The unit product cost of this part is: Variable manufacturing cost Fixed manufacturing cost Unit product cost $ 7.80 6.90 14.70 eBook Print The part can be purchased from an outside supplier for $10.30 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed manufacturing costs can be eliminated. The effect on net operating income as a result of purchasing the part would be a Multiple Chalce $10,120 Increase $2.830 decrease O $4,830 increase $6,830 decrease