27. Wet Pets Inc. makes 100 gallon plexiglass aquariums. They reported the following finance information for last year Direct Labor: 6,000 hours @ $20/hr Production Manager Salary $50,000 Factory Rent: $24,000 Equipment maintenance $10,000 considered a variable expense Equipment depreciation: $10,000 Production for the year: 12,000 units Total Revenue: $1,000,000 Total aquariums sold during the period: 10.000 units Operating Income under absorption costing (after non-production expenses): $204,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under variable costing? (Round per-unit costs to the nearest cont.) A) $188,340 B) $219,660 C) $190,000 D) $218.000 E) None of the above 28. Future benefits foregone when one option is chosen over another are called: A) Decision Costs B) Opportunity Costs c) Relevant Costs D) Sunk Costs E) None of the above 29. Which of the following are factors to consider when deciding whether to accept a special order? A) Whether there is sufficient excess production capacity B) The fixed costs that will be allocated to the units produced C) The projected salvage value of current production equipment D) Last year's budgeted level of production E) All of the above 30. Operating results for Division A of Alpha Company during 2019 are as follows: Sales $400,000 Cost of goods sold 248.000 Gross profit $152.000 Direct expenses $27,000 Common expenses 45,000 Total expenses $72.000 Net income $80.000 If Division A would maintain the same quantity of product sold while raising selling prices by 5% and making additional advertising expenditures of $30,000, what would be the effect on the Division's net income? (Ignore income taxes in your calculations.) A) Net income would increase by $10,000. B) Net income would increase by $20,000. C) Net income would increase by $30,000. D) Net income would decrease by $10,000. E) Net income would decrease by $20,000