14. A company distributes a product that sells for $50 per unit. Variable expenses are $10 per unit, and fixed expenses total $15,000 annually. Assume that the company sold 4,000 units last year. The sales manager is in the selling price, combined with a $30,000 increase in advertising expenditures, would increase annual need dat 10% e u n a If these changes were made, by how much would net operating income increase or decrease? unit sales by 50%. a. $20,000 increase b. $16,000 increase c. $12,000 decrease d. $10,000 decrease e. None of the above 15. A company produces toys. The following information is available: Selling price per doll $26.40 Variable costs per doll $12.00 Current anmual sales 80,000 units Current fixed costs S360,000 The sales manager projects that next year a 10% reduction in selling price, combined with an increase of SS0 000 in advertising spending would result in an increase of 50% in unit sales. By how much will net income increase ifthey do so? a. $166,000 b. $157,000 C. $187,600 d. $145,000 e. $209,200 16. A company uses direet labor-hours as the allocation base in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 1,500 hours and the total estimated manufacturing overhead was $30,000. At the end of the ycar, actual diroct labor-bours for the year were 1,300 hours and the actual manufacturing overhead for the year was $29,000. What is the amount of overapplied or underapplied manufacturing overhead for the year? A. $3,000 underupplied B. S,000 overapplied C. $5,000 underapplied D. $3,000 overapplied E. None of the above