25. A company has a process that results in 15,000 pounds of Product A that can be sold now for $8 per pound. An alternative would be to process Product A further at a cost of $100,000 and then sell it at a new price of S14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? Process further, the company will be better off by $10,000. Sell now, the company will be better off by $10,000. Process further, the company will be better off by $90,000. Sell now, the company will be better off by $100,000. A) B) C) D) 26. Lao Shu Bruce Company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will A) increase by $50,000. B) decrease by $90,000. C) decrease by $6,000. D) increase by $6,000. $215,000 125.000 90,000 140,000 S(50,000) has the following data: $350,000 150,000 275,000 27. Genius Professor Mullen, Inc. Variable expenses Fixed expenses What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments (SO Fixed Costs go away)? A) $200,000 increase B) $200,000 decrease C) $275,000 decrease D) Cannot be determined from the data provided. 28. Lao Shu Bruce Corp has the following information: $900,000 480,000 465,000 Sales Variable expenses Fixed expenses If this division is eliminated, the fixed expenses will be allocated to the company's other divisions (S0 Fixed Expenses go away). What is the incremental effect on net income if the division is dropped? A) $45,000 increase B) $465,000 decrease C) $420,000 decrease D) $435,000 increase