1. The management of Roy Corporation is considering dropping product B912. Data from the company's accounting system appear below: Sales $ 800,900 Variable expenses $425,000 Fixed manufacturing expenses $ 271,000 Fixed selling and administrative expenses S 231.000 Net Loss ($126,100) All fixed expenses of the company are fully allocated to products in the company's accounting system. Purther investigation has revealed that $195,000 of the fixed manufacturing expenses and $185,000 of the fixed selling and administrative expenses are avaldable if product B912 is discontinued a. What is the amount of Net Income/Loss If the product is discontid? $ Show your math work here and put net income or net loss in the second line 1 b. What is the financial advantage (disadvantage) of discontinuing 8910X? S. (put advantage or disadvantage in the second line) Show your math work here: CShould the product be discontinued? 4.50 2. A company makes 3,000 widgets. The per unit costs to make a widget are DM 10 DL SUPERVISOR SALARY 1 OTHER VARIABLE MOH 5 DEPRECIATION ON FACTORY EQUIPMENT 1.50 OTHER FDXED MOH 15 ($10 of these costs can be avoided if the widgets are purchased . CShould the product be discontinued? 2. Acompany makes 3,000 widgets. The per unit costs to make a widget are DM 10 DL 4.50 SUPERVISOR SALARY 1 OTHER VARIABLE MOH 5 DEPRECIATION ON FACTORY EQUIPMENT 1.50 OTHER FIXED MOH 15 [$10 of these costs can be avoided if the widgets are purchased] If the units are purchased instead of made, all variable costs can be avoided and there will be a chance to rent out part of the factory for $12,000. The cost to buy the units la $35 each unit purchased and the company will have to pay freight-in costs of $890. What kind of cost is the $12,0007 b. What should the company do-make or buy the widgets? c. How much better off will they be with your decision? S Show the members you use under each area below. MAKE BUY