9. The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation: Contribution $1,800,000 margin Fixed expenses Net operating loss 2,100,000 ($300,000) If the Consume Division is eliminated, $1,600,000 of the above fixed costs expenses could be eliminated. What will be the affect on Xamps's profit next year if the Consumer Division is eliminated? a. $300,000 decrease b. $300,000 increase @ $200,000 decrease d. $200,000 increase 10. If a cost is a common cost of the segments on a segmented income statement, the cost should: a. Be allocated to the segments on the basis of segment sales CD. Not be allocated to the segments c. Excluded from the income statement d. Treated as a product cost rather than as a period cost. 11. An unfavorable direct labor efficiency variance could be caused by: a. An unfavorable materials quantity variance An unfavorable variable overhead rate variance c. A favorable materials quantity variance d. A favorable variable overhead rate variance 12. Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic. This error would most likely result in a large: a. Favorable variable overhead efficiency variance b. Favorable fixed manufacturing overhead budget variance & Unfavorable overhead volume variance Unfavorable fixed manufacturing overhead budget variance 13. Costs which are always relevant in decision making are those cost which are: @ Variable b. Avoidable c. Sunk d. fixed