4 (30 MARKS-) a. Reem is a recent Accounting graduate of the College of Business at Zayed Usiventy. She has Dhabi. Reem has made the following presentation to her father's company board of dess and thing p the Units sold Total Revenue 3,000 $70,000 1 5,000 2,000 10,000 $50,000 $40,000 $340,000 Less variable costs 32,000 26,000 16,000 14,300 Less direct fixed costs 14,000 19,000 12.000 45,000 Less allocated fixed costs 6000 10.000 5000 20 Net income $18.000 5 15.000) 18.000 1.2.000 All allocated fixed costs are unavoidable, if any division is discontinued. Dit vs can be ded Since the H division has a net loss, Reem feels that it should be damned. She chains the if the Bn War division will stay the same. Instructions a) Is Reem right about eliminating the W division? briefly indicate why or why it to come the dr would be the profit if she eliminates W compared to sow for all devisions) (18 Marke b) Paul Bunyon Lumber Co. produces several products that can be sold at the sp Marki Sales Value Product Green lumber at Sold aff Additional Xaciabic Conte Sales Val afer $159,600 $24,000 $170 Rough lumber 124,000 28.2001 Sawdust 102.000 19,600 13000 The additional profit that would result from processing rough her further her t section) a. $21,400 b. $49,600. c. $145,400. d. $95,800 Click Save and Submit to save and submit. Click Save All Ares of 7 V8A9 Dhabi. Reem has made the following presentation to her father's quay board of deton and Wan Units sold Tomi 3,000 5,000 2,000 10,000 Revenue $70,000 $50,000 $40,000 $160,000 Less variable costs 32,000 26,000 16,000 74,000 Le direct fixed costs 14,000 19,000 12,000 45,000 Less allocated fixed costs 6.000 10.000 4000 Net income $18.0005 35000 5.5.0000 1.21.000 All allocated fixed costs are unavoidable, if any division is discontinued. Direct costs can be ded Since the H division has a net loss, Reem feels that it should be discontinued. She chim that, if the disim Wcd division will stay the same. Instructions a) Is Reem right about eliminating the W division? briefly indicate why or why not to close the division Verd bepported by a wing would be the profit if she eliminates W compared to now for all devisions) (18 Mark b) Paul Bunyon Lumber Co. produces several products that can be sold at the split off pointed or prender and The Marks); Sales Value Product Green lumber at Split-off Additional Variable Cost Sales Viele afer Exther Processing $159,600 $24,000 $175,000 Rough lumber 124,000 28.200 173,600 Sawdust 102,000 19,600 130.000 The additional profit that would result from processing rough lumber further rather than selling off section) Sales Value Additional Sales Value after Product Split-off Variable Cost Earther assis Green lumber $159,600 $24,000 $175,000 Rough lumber 124,000 28,200 173,400 Sawdust 102,000 19,600 130,000 L. The additional profit that would result from processing rough lumber further rather thun selling a split off is a section) a. $21,400 b. $49,600. c. $145,400. d. $95,800. ii) Which products should be processed further for higher sales? (arduice.hadoo a. Green lumber and rough lumber b. Green lumber and sawdust c. Rough lumber and sawdust d. All three products iii) What is the increase in profit if the appropriate products (classes from part it) a predather? a. $24,200 b. $29,800 e $96,000 $255,800