Assume a retalling company has two departments-Department A and Department. The company's most recent contribution format Income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $800,000 320,000 480,000 400,000 $ 80,000 Department Department $350,000 $450,000 120,000 200.000 230,000 250,000 140,000 260,000 $ 90,000 $(10,000) The company says that $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue If the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 7%. What is the financial advantage (disadvantage) of discontinuing Department B? Multiple Choice $(128,000) $(132,000) Multiple Choice $(128,000) $(132,000) $(166,100) $(146,100) MacBook Air Product A B Assume a company has three products-A, B, and C-that emerge from a joint process. The Joint processing costs that are incurred up to the split- off point equal $1.295,000. The selling prices and outputs for each product at the spin-off point are as follows: Selling Price Outpat $33 per pound 14,000 pounds $29 per pound 18,000 pounds $24 per pound 19,000 pounds Each product can be processed further beyond the spilt-off point. The additional processing costs for each product and their respective selling prices after further processing are as follows: Product A Additional Processing costs $65,000 $72,000 $88,000 Selling Price $37 per pound $34 per pound $30 per pound B The company is trying to decide whether to retain or discontinue the entire joint manufacturing process. What is the financial advantage (disadvantage) of continuing to operate the entire joint manufacturing process? Multiple Choice On Ann Multiple Choice $189,000 $180,000 o o $177,000 $193,000