Help Save he following information is for a company that produced 10,000 units and sold 9.000 units during its first year of operations: Per Year Selling price Direct materials Direct labor Variable manufacturing overhead Sales commission Fixed manufacturing overhead Per Unit $200 $ 71 $ 50 $ 10 $ B $286,000 Which of the following choices explains the relationship between the absorption costing net operating income and the variable costing net operating income? Multiple Choice The absorption costing net operating income will be higher than the variable costing net operating income by $28.600 The absorption costing net operating income will be lower than the variable costing net operating income by $28,600 OCK A retailing company has two departments --Department A and Department. The company's most recent contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $800,000 320,000 480,000 400,000 $ 80,000 Department Department B $350,000 $450,000 120,000 200,000 230,000 250,000 140,000 260,000 $ 90,000 $(10,000) 06 The company says that $140,000 of the fixed expenses being charged to Department Bare sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 11% How much does the company's profit increase or decrease if Department B is discontinued? Of a decrease, the dollar amount is indicated in parentheses, Le. $ (1000)) Multiple Choice $144.000 5 (175.300)