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+ 16. Blue Equipment Co. wants to analyze a mixed cost that they believe is driven by the number of units produced Units Produced Total Mixed Cost January 1,100 $31,450 February 1,500 $33,250 March 1,800 $34,600 April 2,000 $35,500 May 1,300 $32,350 Use the high-low method to estimate Blue Equipment Co's total fixed cost. a) $9,000 b) 31,000 c) 26,500 d) 35,500 17. Morrison Inc. had original sales and cost data for the month of April as follows: Sales 13,600 units Selling price per unit $17.00 Variable cost per unit $11.50 Total fixed costs $28,000 If the company could sell 1,500 more units in the following month, what would be the change in net income? a) Increase by $25,500 b) Decrease by $17,2250 c) Increase by $8,250 d) Increase by $74,800 18. Extreme Sports Inc is considering dropping their mountain bike segment. Information related to their mountain bike segment is as follows: Sales $336,000 Variable Expenses $215,000 Fixed Expenses General Factory Overhead $100,000 Salary of segment manager $65,000 If the segment is dropped, the general factory overhead would be reallocated to other segments. Using incremental analysis, what is the impact on net income if management were to drop the mountain bike segment? a) Net income would decrease by $56,000 b) Net income would decrease by $44,000 c) Net income would increase by $56,000 d) Net income would increase by $44,000 19. Managerial accounting focuses on providing information to: a) Stockholders and creditors b) Management of an organization c) External users d) Regulators