Crane Company Division B recorded sales of $52,500, variable cost of goods sold of $39,400, variable selling expenses of $15,300, and fixed costs of $9,900, creating a loss from operations of $12,100.

Determine the differential income or loss from the sales of Division B. Enter a loss as a negative number. $

Should this Division B be discontinued? (If the answer to above part is negative, select "Yes".)

Starling Co. is considering disposing of a machine with a book value of $23,800 and estimated remaining life of five years. The old machine can be sold for $5,100. A new high-speed machine can be purchased at a cost of 69,400. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,500 to $19,200 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is

increase of $42,800

increase of $55,640

decrease of $55,640

decrease of $42,800

The target cost approach assumes that:

the selling price is set by the marketplace

markup is added to variable cost

markup is added to total cost

markup is added to product cost