Chang Industries has 2,600 defective units of product that have already cost $14.60 each to produce. A salvage company will purchase the defective units as they are for $5.60 each. Chang's production manager reports that the defects can be corrected for $5.40 per unit, enabling them to be sold at their regular market price of $22.20. The incremental income or loss on reworking the units is: Multiple Choice o $14,040 l. o $29,120 income. o $43,160 income. o $43,680 income. o $29,120 l. Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $1,000. The division sales for the year were $1,048,000 and the variable costs were $858,000. The fixed costs of the division were $191,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice O $132,700 decrease O $56,300 decrease O $57,300 decrease O $190,000 increase O $190,000 decrease Maxim manufactures a hamster food product called Green Health. Maxim currently has 15,500 bags of Green Health on hand. The variable production costs per bag are $2.90 and total fixed costs are $21,000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 15,500 bags of Premium Green and 4,100 bags of Green Deluxe, which can be sold for $9 and $7 per bag, respectively. The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be: Multiple Choice $8,200. $13,200. $168,200. $5,000. $163,200. Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.30 and total fixed costs are $10,000. The cat food can be sold as it is for $8.65 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,500 cost. The additional processing will yield 10,000 bags of Premium Green and 3,500 bags of Green Deluxe, which can be sold for $7.65 and $5.65 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be: Multiple Choice 0 $60,775. 0 $93,775. 0 $98,775. 0 $50,775. 0 $96,275. Walters manufactures a specialty food product that can currently be sold for $21.20 per unit and has 19,200 units on hand. Alternatively, it can be further processed at a cost of $11,200 and converted into 11,200 units of Deluxe and 5,200 units of Super. The selling price of Deluxe and Super are $31.80 and $19.20, respectively. The incremental net income of processing further would be: Multiple Choice 0 $43,200. 0 $11,200. 0 $48,960. 0 $37,760 0 $17,200. Maxim manufactures a hamster food product called Green Health. Maxim currently has 19,000 bags of Green Health on hand. The variable production costs per bag are $3.20 and total fixed costs are $24,000. The hamster food can be sold as it is for $11.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 19,000 bags of Premium Green and 4,400 bags of Green Deluxe, which can be sold for $10 and $8 per bag, respectively. Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be: Multiple Choice $225,200. 0 $8,800. 0 $16,200. $16,200. 0 $217,800. 0 $7,400