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A Zorporation has two departments, Toys and Condy. The company's most recent monthly contribution format income statement follows: Candy Department is dropped, in addition, the
A Zorporation has two departments, Toys and Condy. The company's most recent monthly contribution format income statement follows: Candy Department is dropped, in addition, the eliminosion of the Candy Department will result in a 20% decrease in the sales of the Toys Department. Q: If the Candy Department is dropped, what will be the effect on the net operating income of th zoxporation as a whole? Muhtipie Choice Decrease by $340.000 Decrease bv $360.000 Company manufactures 8,000 units of processor chip, A.218, each year for use on its production line. At this level of activity, the cost per unit of processor chip is: An outside supplier has offered to sell all units of processor chip the - Rompany requires. If the company decided to discontinus making processor chip, 30% of the above fixed manufacturing overhead costs could be avoided. The company could use the facilities presently devoted to the production of processor chip to increase production of another nroduct by 2.500 units, which would yield an additional contribution margin of $80.000 annually. Q: What is the maximum price the Sompany would be willing to pay the outside supplier for processor chip? A: $ per unit
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