5 Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: 01:17:48 Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Talbot Heather Total $352,200 $234,800 $587,000 264,560 70,440 335,000 87,640 164,360 252,000 138, 720 92,480 231,200 $(51,080) $ 71,880 $ 20,800 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable? Multiple Choice $51,080 loss $252.000 profit $71,880 profit 4 Delaware Corp. prepared a master budget that included $16,120 for direct materials, $28,000 for direct labor, $18,135 for variable overhead, and $39,600 for fixed overhead. Delaware Corp. planned to sell 4,030 units during the period, but actually sold 4,330 units. What would Delaware's variable overhead cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.) 8 01:17:33 Multiple Choice $39,600 $17,089 $18,135 $19,485 3 Cotton Corp.currently makes 15,000 subcomponents a year in one of its factories. The unit costs to produce are: 01:17:22 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Per unit $26.00 26.00 19.00 11.00 $82.00 An outside supplier has offered to provide Cotton Corp. with the 15,000 subcomponents at an $94.00 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp, should pay the outside supplier? Multiple Choice $71.00 $94.00 $82.00 2 Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage rate of $33.50 per hour. During July, Whitman paid $154,880 to employees for 4,840 hours worked. 2,670 units were produced during July. What is the flexible budget amount for direct labor? 01:17:04 Multiple Choice $300,270 $324,280 O $333.770 $178,890