11) Which of the following statements is true? 1. When a company has a production constraint, total contribution margin will be maximized by emphasizing the products with the highest contribution margin per unit of the constrained resource. 2.When a company has a production constraint, the product with the lowest contribution margin per unit of the constrained resource should usually be given highest priority. A) Only statement I is true. B) Only statement II is true. C) Both statements are true. D) Neither statement is true. 15) The management of Furrow Corporation is considering dropping product LOTE. Data from the company's budget for the upcoming year appear below: Sales $ 980,000 Variable expenses $ 402,000 Fixed manufacturing expenses $ 384,000 Fixed selling and administrative expenses $ 264,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $261,000 of the fixed manufacturing expenses and $222,000 of the fixed selling and administrative expenses are avoidable if product LOVE is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be: A) $(70,000) B) $95,000 C) $70,000 D) $(95,000) 16) The management of Lanzilotta Corporation is considering a project that would require an investment of $208,000 and would last for 6 years. The annual net operating income from the project would be $104,000, which includes depreciation of $15,000. The scrap value of the project's assets at the end of the project would be $24,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.) A) 1.7 years B) 2.0 years C) 1.5 years D) 2.9 years 20) Welch Corporation is planning an investment with the following characteristics (Ignore income taxes.): Useful life Yearly net cash inflow $ 80,000 8 years Salvage value $ 0 Internal rate of return 13% Required rate of return 9% Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The initial cost of the equipment is closest to: A) $560,100 B) $383,920 C) $394,270 D) Cannot be determined from the given information