Kobe Company has manufactured 200 partially finished cabinets at a cost of $134,000. These can be sold as is for $160,800. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $32,500, and the finished cabinets could be sold for $214,400. If Kobe Company processes the cabinets further, incremental income is: Multiple Choice $53,600. O $101,500 O $80,400. O $21,100. $34,840. Maxim has already spent $29,300 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $92,240. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,175. If Maxim processes further, the Premium Green can be sold for $100,450. The incremental income to process further is: Multiple Choice $8,210. $(8,210) $2,035. $(2,035). $3.035. Wheeler Company can produce a product that incurs the following costs per unit: direct materials, $11.00; direct labor, $25.00, and incremental overhead, $9.80. An outside supplier has offered to sell the product to Wheeler for $48.55. Compute the net incremental cost or savings of buying. Multiple Choice $5.11 savings per unit. $5.11 cost per unit. $2.75 cost per unit. $4.90 cost per unit. $3.20 savings per unit. Factor Company estimates that producing a unit of product would require $7.60 per unit of direct materials and $23.60 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $13.30 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $42.50 per unit. Factor Company should choose to: Multiple Choice Buy since the relevant cost to make it is $55.90. Make since the relevant cost to make it is $44.50. Buy since the relevant cost to make it is $44.50. Make since the relevant cost to make it is $31.20. Buy since the relevant cost to make it is $31.20. Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $50,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 994,000 492,000 502,000 552,500 $ (50,500) If the backpack division is dropped, all $492,000 of its variable costs are avoidable, and $221,000 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be: Multiple Choice $502.000 decrease $221,000 increase $281,000 decrease $502,000 increase $281,000 increase