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ed monthly operating income data for Cosmo Inc. for November is presented below information regarding Cosmo's operations follows the statensent 12 TetalMail Saore To n

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ed monthly operating income data for Cosmo Inc. for November is presented below information regarding Cosmo's operations follows the statensent 12 TetalMail Saore To n Stose $200,000 san,ooo $120,00. Saks l ariable expenses -44,000 Traceabde Rsed expenses.. 24.900 2010. Common vedep Net operating income 24,900 Cosmo allocates common fixed expenses to each store on the basis of sales dollars. Management estimates that closing the Town store would result in a 10% decrease in Mall Store's sales. The operating results for November are representative of all months. A decision by Cosmo Inc. to close the Town Store would result in a monthly increase (decrease) in Cosmo's net operating income of (choose the closest answer): A. $4,000 B. S(10,800) C. S(800) D. $(4,000) E $2,000 13. Famsworth Television makes and sells portable television sets. Each television regularly sells for s200. The following cost data per television are based on a full capacity of 12.000 televisions produced each period: Direct material Direct labor $75 S5s Manufacturing overhead (75% variable, 25% unavoidable fixed) S48 A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $10 per television for shipping. Farnsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order? A. S200 C. $178 D. S176 E. SI81

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