Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $124,000. Division sales for the year were $1,300,000 and its variable costs were $1,165,000. The fixed costs of the division were $260,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be: $70,600 decrease $34,000 increase $169,000 decrease S169,000 increase ) $34.000 decrease Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,200 and will produce cash flows as follows: End of Investment Year $ $8,200 8,200 8,200 24,600 The present value factors of $1 each year at 15% are: 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2 2832 The net present value of Investment B is: 1 Multiple Choice o $975. o $(16175). o $9,400. o $40,775. o $6,181. Carmel Corporation is considering the purchase of a machine costing $36,000 with a 6-year useful life and no salvage value. Carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year, In calculating the accounting rate of return, what is Carmel's average investment? Mommy S Multiple Choice $36,000. $21,000. $7.000. $18,000. $6.000