1. Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $460,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,500 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $108 and for Product C is $52.

Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not.

	Sell as is	Process Further
Sales	$460,000
Relevant costs:
Costs to process further
Total relevant costs
Income (loss)
Incremental net income (or loss) if processed further			Incremental income
The company should	process further

2. Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 3.1 pounds of the material, S5 uses 3.4 pounds of the material, and G9 uses 6.3 pounds of the material. Demand for all products is strong, but only 56,000 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows.

	K1	S5	G9
Selling price	$150.29	$116.98	$210.63
Variable costs	101.00	84.00	147.00
Calculate the contribution margin per pound for each of the three products. (Round your answers to 2 decimal places.)

Contribution margin per pound
	Product K1	Product S5	Product G9
Contribution margin per pound
Order in which products should be produced and filled:

3. All the answers are correct below. I just need help finding the answer to the only empty cell at very bottom.

Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment.

MARINETTE COMPANY Income StatementCanoe Segment

Sales

$1,950,000

Variable costs

Direct materials

$460,000

Direct labor

560,000

Variable overhead

260,000

Variable selling and administrative

220,000

Total variable costs

1,500,000

Contribution margin

450,000

Fixed costs

Direct

400,000

Indirect

300,000

Total fixed costs

700,000

Net income

$(250,000)

If canoes are discontinued, calculate the net income lost or gained.

	Keep the department	Eliminate the department
Sales	$1,950,000
Expenses:
Direct materials	460,000
Direct labor	560,000
Variable overhead	260,000
Variable selling and administrative costs	220,000
Direct fixed costs	400,000
Indirect fixed costs		300,000
Total expenses	1,900,000	300,000
Net income (loss)	$50,000	$(300,000)
The canoe division should be:	Kept
If the canoe division is eliminated, income will be:	lower by: