10. Product CJ74 has sales revenue of $730,000, variable cost of goods sold $700,000, and selling expenses of $40,000 including 80% fixed cost. The product creates an operating loss of $10,000. All fixed costs will still be paid by the company if CJ74 is discontinued. How much will operating net income increase or decrease if product CJ74 is discontinued? a. $22,000 decrease b. $30,000 increase c. $10,000 increase d. $2,000 decrease 11. Tabby Trucking Co. is considering disposing of a truck (long-term asset). Tabby can sell the truck through a broker for $58,000 less 7% commission expense. Alternatively, Calico Co. has offered to lease the truck for six years for a total of $79,000. If the truck is leased to Calico, Tabby will incur repair, insurance, and licensing expenses estimated at $30,000 total for the six-year lease period. At lease-end, the truck is expected to have no residual value. What will be the effect on net income for 6 years if Tabby leases the truck to Calico instead of selling (disposing of) the truck? a. S 4,940 decrease b. $4,940 increase c. $9,000 decrease d. $ 20,060 increase 12. The following information is available for Weeble Co.'s proposed investment: Original investment cost $95,000 36,224 Net present value (NPV) The proposed investment's present value index (rounded to 0.00) is a. 0.38. b. 3.22. C. 2.62. d. 1.38. anotis $55.000 with a 7-year