2.Howard Enterprises, which has three departments, recently reported the following results: A B C Sales revenue S 18,000 S 69,000 63,000 Less: Operating costs 17,000 86,100 79,500 Operating income (loss) S 1,000 $ (17,100 S (16,500 The company incurred variable operating costs as well as $38,000 of fixed operating costs. The $38,000 amount was allocated to A, B, and C on the basis of sales revenue and is included in the cost figures noted above. Which department(s), if any, should be closed if none of the fixed operating costs can be avoided? Multiple Choice: . None of the departments should be closed. . Department B. . Department C. . Department A. . Departments B and C.1.Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super Total Units 15,000 3,000 18,000 Sales revenue S 300,000 S 660,000 S 960,000 Less: Cost of goods sold 228,000 360,000 588,000 Gross Margin S 72,000 S 300,000 S 372,000 Less: Selling expenses 72,000 140,000 212,000 Operating income (loss) S 0 S 160,000 S 160,000 Fixed manufacturing costs included in cost of goods sold amount to $3 per unit for Regular and $20 per unit for Super. Variable selling expenses are $4 per unit for Regular and $20 per unit for Super; remaining selling amounts are fixed. If Omar Industries eliminates Regular and uses the available capacity to produce and sell an additional 1,300 units of Super, what would be the impact on operating income? Multiple Choice: . $73,000 increase $58,000 increase $99,000 increase $55,000 increase . None of the answers is correct