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1. The management of ACE Corporation is considering dropping product 1910X. Data from the company's accounting system appear below: Sales $ 798,900 Variable expenses $415,100

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1. The management of ACE Corporation is considering dropping product 1910X. Data from the company's accounting system appear below: Sales $ 798,900 Variable expenses $415,100 Fixed manufacturing expenses $271,600 Fixed selling and administrative expenses $231.800 Net Loss (5119,600) All fixed expenses of the company are fully allocated to products in the company's accounting system. Purther investigation has revealed that $192,000 of the fixed manufacturing expenses and S166,400 of the fixed selling and administrative expenses are avoidable if product A910X is discontinued. SHOW YOUR WORKI a. What is the amount of Net Income/Loss of the product is discontinued? $ Show your math work here and put net income ornet loss in the second line. b. What is the financial advantage (disadvantage) of discontinuing B910%? $ (put advantage or disadvantage in the second line) Show your math work here: CShould the product be discontinued? 3. costs Bathroom Accessories Co. S18 of variable costs to produce ce bathroom scale which normally sells for $29. A foreign wholesaler offers to purchase 1,000 scales at $21 each. The shipping will cost $1 per scale if the order is accepted. The company has sufficient used capacity to produce the 1,000 scales and only $500 of additional costs will be incurred if the order is accepted. The company is willing to sell the scales even if they will only break even on the sale in order to generate goodwill with the foreign company and develop a new market. & What is the effect on net income if the order is accepted? Increase or decrease What is the minimum selling price the company would be willing to accepe? S. Show the numbers you use in the attement in the Accept Order area below. If you don't accept the order, all the members are rosso in this differential analysis, a second column isn't needed Accept Order Bathroom Accessories Comakes 3 scales with these costs and selling prices Daluate Scale Glass Scale Selling price per unit Regular Scale $40 $30 $35 Variable costs per unit 24 16 20 Fued costs por unit 3 3.5 Direct labor hours per unit 2 25 If they have a limit of 30,000 labor hours but no limit on units sold, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is: (show your work below and the contribution margin per hour) L cm per hour $ 2 cm per hour $ cm per hour $

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