* Charles C h aste divisos Urban and Rural Last month, the company report of 60.000 30contribution manatle for Urban Divisio Rural Division hade in ratio of 409 with sales of $100,000. Net operating income for the company was $40.000 subtracting the common fixed cost of $60,000. The controller of Charleston issuing that the Urban Division should be closed down, because showing a loss of $2,000. To calculate divisions' net operating incomes, the controller allocated the con red cost to the two divisions according to their sales dollar Is the controller's argument to close the Urban Division right or wrong? Why? A The controller is right in that Charlestons net operating income will increase by $2.000 ir che di Urban Division The controller is wrong because the Urban Division segment margin is 522,000 The controller is wrong because the Urban Division segment margin is $20,000 The controller is right because the Urban Division has a lower contribution margin ratio Division E. The controller is wrong because the Urban Division contribution margin is 560,000 16 Austin, Inc. is preparing a bid for a special order that would require 780 liters of material W34C. The company already has 640 liters of this raw material in stock that originally cost $8.10 per liter. Material W34C is used in the company's main product and is replenished on a regular basis. New stocks of the material can be readily purchased for $8.50 per liter. What is the relevant cost of the 780 liters of the raw material when deciding how much to bid on the special order? $6,374 $6,630 $6,318 $6,474 E None of the above