1.Teruba Melons purchased a truckload of watermelons weighing 3,000 pounds for $900. The company separated the melons into two grades: superior and economy. The superior grade melons have a total weight of 2,400 pounds and the economy grade melons total 600 pounds. The company sells the superior grade at $0.60 per pound and the economy grade at $0.30 per pound. How much of the $900 cost of the truckload will be allocated to the superior grade melons using the relative sales value method? Use five significant digits in calculations.

Select one: a. $800 b. $720 c. $600 d. $1,440

2.The following information is available for Diva Footwears segments: Platform Shoes Athletic Shoes Boots Sales $120,000 $420,000 $360,000 Variable costs 64,000 220,000 140,000 Contribution margin 56,000 200,000 220,000 Direct fixed costs 45,000 70,000 90,000 Allocated fixed costs 20,000 70,000 60,000 Net income ($ 9,000) $ 60,000 $ 70,000 Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,000 pairs of boots for a one-time export deal for $81 per pair. Diva can avoid $3.00 per pair of the normal varia-ble cost on this sale, but Diva must pay a fixed cost of $4,000 to have the boots shipped. Diva has the capacity to produce this order, and no regular sales will be affected. What affect will occur on Divas profits if the order is accepted?

Select one:

a. Profits will increase by $42,000.

b. Profits will increase by $49,000.

c. Profits will increase by $45,000.

d. More information is needed to answer.