If the cost savings from discontinuing a product exceed the lost revenues from discontinuing the product, it should be retained. O O True False Part P40 is a part used in the production of air conditioners at Jackson Corporation The following costs and data relate to the production of Part P40 Number of parts produced annually 26.000 Fored costs 541.000 Variable costs Total cost to produce 5107 000 Jackson Corporation can purchase the part from outside for 1453 per unit ay purchase from th e suppliers of the feed bevded Assume that factory space be from an outside source can be used to manufacture another product that can be sold for $2.200 prot o n Corporation makes the part what was operang income be? purchasing the part OA 533.600 greater than the company bought the part OB. $136,000 greater than the company bought them OC 529.000 greater than it the company bout the part OD. 529.000 less than the company bought the part One key to analyzing short-term business decisions is to use a contribution margin approach that separates variable costs from faced costs. O O True False Special orders increase income if the revenue from the order does not exceed the incremental variable and fixed costs incurred to fill the order O O True False Buzz Appliances manufactures two products Food Processors and Espresso Machines. The following data are available Food Processors Espresso Makers Sales price $165 $245 Variable costs $90 $200 The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1200 machine hours per month What is the contribution margin per machine hour for espresso machines? O A. 5135 OB. $150 O C. $765 OD. 545 A joint production process at Specialty Jams Farm results in two products, cherry Cherry jelly Joint costs allocated Cherry jam $10000 $12.000 and cherry The following cost and act data to these products Number of units produced from joint process 2.100 2.100 Selling price at split-off point Selling price afer processing further 5260 5510 5175 52.00 Cost of processing further 2.300 2.000 Cherry jelly can be sold as is the people for $2 So , what would be the overalt on operating income? per unit can be processed further recally charry me and then for 10 per c hery processed further the speciay cherry OA $2.950 net increase in operating income OB $2.950 et decrease in operating income OC. 55.460 net decrease in operating income OD 55.460 net increase in operating income