Corp. manufactures and sells a number of products, including Product G 10,000 units were sold last year. Results for last year for the manufacture and sale of Product G are a follows:

Sales $750,000 Less expenses: Variable production cost $450,000 Sales commissions 110,000 Salary of product manager 95,000 Fixed product advertising 80,000 Fixed manufacturing overhead 70,000 Net Operating loss 805,000 ($55,000)

A) Beta is trying to decide whether to discontinue the manufacture and sale of Product G. All expenses other than the fixed manufacturing overhead are avoidable is the product is dropped. Half of the fixed manufacturing overhead is avoidable. Using the above information and assuming that dropping product G will have no effect on another product line. If BETA drops Product G, compute the change in annual net operating income

B) Beta receives a special order for 100 units of Product G from ALPHA Corp. The special order would not involve any selling costs, but BETA would have to purchase an imprinting machine for $1,000 to add the logo of ALPHA Corp to the product What is the minimum price per unit which BETA could accept for this special order? There is ample idle capacity to fulfill the order