24 Cotton Corp, has three divisions. Division A currently has a net loss of $50,000 as follows: Sales revenue Less: Variable costs Division A $500,000 300,000 Contribution margin $200,000 Less: Direct fixed costs 100,000 Segment margin $100,000 Less: Common fixed costs 150,000 Net operating income (loss) ($50,000) Eliminating Division A would eliminate $100,000 of direct fixed costs. The $150,000 of common fixed costs would be redistributed to Cotton Corp.'s remaining product lines. Will Cotton Corp.'s net operating income increase or decrease if the Division A is eliminated? By how much? decrease by 150,000 O increase by $100,000 O decrease by $100,000 O increase by 50,000 QUESTION 25 Jaybird Inc. produces leather handbags. The sales budget for the next three months is: June 7,000 units, July 6500 unit and August 6800 units. Jaybird Inc.'s ending finished goods inventory policy is 10% of the following month's sales. June 1 beginning inventory is estimated to be 1,000 units. How many units will be produced in June? O 8,000 units O6650 units O7350 units O7,000 units