4. Selzone Corporation operates two divisions with the following operating results from last year: Management is considering whether the Southern Division should be dropped since it incurred an operating loss last year. Allocated common fixed costs would continue for Selzone Corporation whether the division is dropped or not. i) If the Southern Division had been dropped at the beginning of last year, what would the total operating income for Selzone Corporation have been for the year? A) $15,000 B) $75,000 C) $45,000 D) $90,000 5. Sousa Corporation makes a variety of wind instrument reeds. The company produces 5,000P7 clarinet reeds each year. Each P7 clarinet reed sells for $5 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the P7 clarinet reed product line. If Sousa Corporation drops the P7 clarinet reed product line, $6,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the P7 clarinet reed product line were to be dropped? A) Increase in total operating income of $6,000 B) Decrease in total operating income of $6,000 C) Increase in total operating income of $4,000 D) Decrease in total operating income of $4,000 6. Rabbitt Corporation is considering whether to discontinue a division that generates a total contribution margin of $40,000 per year. Fixed manufacturing overhead allocated to this division is $60,000, of which 12,000 is unavoidable. If Rabbitt Corporation were to eliminate this division, the effect on the company's operating income would be a(n) A) increase in total operating income of $8,000. B) decrease in total operating income of $8,000. C) increase in total operating income of $28,000. D) decrease in total operating income of $28,000