$25.$ Younes Incorporated manufactures industrial components. One of its products, which is

used in the construction of industrial air conditioners, is known as P$06.$ Data concerning

this product are given below:

Per Unit

Selling price $ $220$

Direct materials $ $38$

Direct labor $ $1$

Variable manufacturing overhead $ $8$

Fixed manufacturing overhead $ $16$

Variable selling expense $ $4$

Fixed selling and administrative expense $ $16$

The above per unit data are based on annual production of $4,000$ units of the component. Assume

that direct labor is a variable cost.

What is the current contribution margin per unit for component P$06$ based on its selling price of

$$220$ and its annual production of $4,000$ units?

A$.$ $$173$ per unit

B$.$ $$169$ per unit

C$.$ $$137$ per unit

D$.$ $$51$ per unit

$26.$ The management of Woznick Corporation has been concerned for some time with the

financial performance of its product V$86$O and has considered discontinuing it on several

occasions. Data from the company's accounting system for this product for last year

appear below:

Sales $ $150,000$

Variable expenses $ $72,000$

Fixed manufacturing expenses $ $50,000$

Fixed selling and administrative expenses $ $33,000$

In the company's accounting system all fixed expenses of the company are fully allocated to

products. Further investigation has revealed that $$30,000$ of the fixed manufacturing expenses

and $$13,000$ of the fixed selling and administrative expenses are avoidable if product V$86$O is

discontinued.

What would be the financial advantage $($disadvantage$)$ from dropping product V$86$O$?$

A$.($$$5,000)$

B$.($$$35,000)$

C$.$ $$5,000$

D$.$ $$35,000$