17 Crane Company manufactures two products called Gamma and Lambda that sell for $95 and $70, respectively. The company has the capacity to annually produce 135,000 units of each product. Its unit costs for each product at this level of activity are given below Gamma Lambda Variable manufacturing cos Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit 17 12 19 15 10 16 The company considers its traceable fixed manufacturing ov erhead to be anoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dellars. Suppose that Crane normally produces and sells 82,500 Gammas and 62,400 Lambdas per year. If Crane discontinues the Lambda product line, its sales representatives could increase sales of Gammas by 9,000 units. If Crane discontinues the Lambda product line, how much would profits increase or decrease? A. Decrease by s 860,400 B. Decrease by $1,013,400 C. Decrease by $1,796.400 D. Increase bys75.600 E. Increase by $ 228,600 18 Han Products manufactures 2.500 units of part S-6 cach year for use on its production line. At this level of activity the cost per unit of pan S-6 is: $ 54 12 Direct materials Diroct labor Variable manufactuning overhead Fixed manufacturing overhead Total manufacturing cost per unit S 146 Anoutside supplier has ofered to sell Ilan Products all units ofpart S-6 ?t requires. Inan Prodets decided to discontinue making puri S-6 30% ofthe above fixed manufacturing overhead costs could be avoided Han Products could use the facilities prcsently devoled to the production of part S-6 to expand production of another product thas would yicld an additional contribution margin of $20,000 annualy. What is the maximum price Han Products would be willing to pay the outside supplier for part S-6? ?.$14600 B S 74.00 c s95.60 D 103.60 ES 124.40