27 Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $100,000. Division sales for the year were $1,460,000 and its variable costs were $1,325,000. The fixed costs of the division were $370,000. If the kitchen division is dropped, 30% of the fixed costs allocated it could be eliminated. The impact on Carns's operating income from eliminating the small tools division would be: 10 points Multiple Choice 8 03:40:07 $111,000 increase eBook $24,000 increase Ask $51,700 decrease O o $111.000 decrease O $24.000 decrease 28 Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $58,000 for the past year. Kitchen division sales for the year were $1,090,000, and its variable costs were $780,000. The fixed costs of the division were $321,000. If the kitchen division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be: 10 points Multiple Choice X 03:40:02 $263,000 decrease eBook O $101,350 decrease Ask $101,350 increase o $345,350 decrease O $263,000 increase Galla Inc. operates in a highly competitive market where the market price for its product is $189 per unit. Galla desires a $20 profit per unit. Galla expects to sell 6,900 units. Additional information is as follows: 26 Variable product cost per unit Variable administrative cost per unit Total fixed overhead Total fixed administrative 10 points $ 22 17 64,000 37,000 8 03:40:11 Using target costing, what is the target cost? eBook Multiple Choice Ask $169.00 $130.00 O $152.00 O O $135.00 O $174.00