A segment has the following data: * Sales $350,000 Variable expenses 150,000 Fixed expenses 275,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? $200,000 increase O $200,000 decrease O $275,000 decrease O $275,000 increase O None of the above Pine Manufacturing Company can make 1,000 units of a necessary component part with the following costs: * Direct Materials $24,000 Direct Labor 16,000 Variable Overhead 4,000 Fixed Overhead 7,000 None of Pine Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Pine Company would be willing to accept to acquire the 1.000 units extemally? $43,000 $55,000 O $48,000 $52,000 None of the above Home, Inc. can produce 100 units of a component part with the following costs: * Direct Materials $24,000 Direct Labor 16,000 Variable Overhead 4,000 Fixed Overhead 7,000 None of Pine Company's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8,000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Pine Company would he willing to accept to acquire the 1.000 units extemally? O An increase of $80,000 O An increase of $5,000 O An increase of $17.000 O A decrease of $22.000 0 None of the above Adler Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs were $240,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $70 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: O Income would decrease by $4,000. O Income would increase by $4,000. O Income would increase by $70,000. O Income would increase by $20,000 None of the above Freddy Company has the following unit cost behavior, based on 10,000 units: * $ 4 Direct materials Direct labor Variable overhead 10 Fixed overhead 6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The nomal price per unit is $40. In addition, a special stamping machine will have to be purchased for $2,000 in order to stamp the foreign company's name on the product. The order can be fulfilled using the company's existing capacity without affecting any other order. The incremental income (loss) from accepting the order is: O $(1,000) O $(2,000) $2,000 O $4,000 O None of the above