1. It costs a company $14 of variable costs and S6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, and none of the fixed costs are affected, then net income will: increase $3,000. b. increase $12,000. decrease $12,000. d. decrease $3,000. a. c. 2. Jobart Company is currently operating at full capacity. It is considering buying a part from an outside supplier rather than making it in-house. If Jobart purchases the part, it can use the released productive capacity to generate additional income of $30,000 from producing a different product. When conducting incremental analysis in this make-or- buy decision, the company should: ignore the $30,000 b. add $30,000 to other costs in the "Cost to Make" column. add $30,000 to other costs in the "Cost to Buy" column. subtract $30,000 from the other costs in the "Costs to Make" column. a. c. d. 3. A segment of Hazard Inc. has the following data./ Sales $200,000 Variable expense $140,000 Fixed expenses $100,000 If this segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. $120,000 increase. b. $10,000 decrease. $50,000 increase. d. $10,000 increase. a. C