Lusk Corporation produces and sells 80,000 units of Product X each month. The selling price of Product X is $10 per unit, and variable expenses are $4 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $50,000 of the $560,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the company's overall net operating income would: increase by $30,000 per month decrease by $30,000 per month decrease by $80,000 per month increase by $80,000 per month Vanikoro Corporation currently has two divisions which had the following operating results for last year: Because the Rubber Division sustained a loss, Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the year? $60,000 higher $50,000 lower $60,000 lower $10,000 higher Barrus Corporation makes 50,000 motors to be used in the production of its power lawn mowers. The cost per motor at this level of activity is as follows: An outside supplier has offered to sell motors to Barrus for $38 per motor. If Barrus stops making the motors, none of the fixed manufacturing overhead would be avoidable and there would be no other use for the facilities. If Barrus purchases the motors from the supplier, by how much will net income change? $287,500 increase $445,000 decrease $122,500 decrease $165,000 increase