Knowledge Check 01 A company has three product lines, one of which reflects the following results: $ 215,000 Sales Variable expenses 125,000 Contribution margin 90,000 140,000 Fixed expenses $(50,000) Net loss If this product line is eliminated, 60% of the fixed expenses are traceable fixed expenses, which can be eliminated and the other 40% are common fixed expenses that cannot be avoided. If management decides to eliminate this product line, the company's net income will increase by $50,000 decrease by $90,000 decrease by $6,000 increase by $6,000 Knowledge Check 01 The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service is called Next opportunity cost vertical integration Orelevant cost avoidable cost Knowledge Check 01 Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 p the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs 12 Allocated manufacturing overhead costs Allocated general administrative costs $ 20 17 Outside supplier's offer What are the total relevant cost of producing the units internally? $150,000 $120,000 $200,000 $170,000