I I QUES TION 1 Division 1 has sales of $40,000, variable costs of $25,000. and applied fixed costs of $20,000. Should I eliminate this division? Find three correct answers. No, because variable costs are less than sales No. If you eliminate it you will decrease overall profits by $15.000 No, it has no contribution margin No, it is contributing to fixed costs QUESTION 2 sell my product for $10. I have $3 in variable costs. If I process further, the variable costs increase to $9 and I can sell the enhanced product for $12. Should I process further? Yes, $12 is better than $10 Yes, the enhanced product is more profitable O both are equal No, the original product had a contribution margin of $7 and the new one would have only have a contribution margin of $3 QUESTION 3 normal sell my product for $ 13.00 each. The variable costs are S3 and the applied fixed costs are $7.I am offered the opportunity to accept an order for 1000 units for $9. The fixed costs remain the same whether I accept the order or not. Should I accept this order? Find two correct answers. No, because the total costs are higher thna the proposed selling price Yes because variable costs are less than the proposed selling price D Yes. The selling price is higher than the relevant costs of $3. No, you will lose 1 x 1000 or $1000