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Unless otherwise indicated, each of the following parts is independent. In all cases, show computations to support your answer. Boyle's Home Center has two departments, Bath and Kitchen. The most recent income statement for the company follows: A study indicates that $370,000 of the fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 10% decrease in the sales of the Kitchen Department. If the Bath Department is dropped, what will be the effect on the net operating income of the company as a whole? Morrell Company products several products from the processing of krypton, a rare mineral. Material and processing costs total $30,000 per ton, one-third of which is allocated to the split-off point or processed further at a cost of $13,000 and then sold for $60,000. The sales value of merifulon at the split-off point is $40,000. Should merifulon be processed further or sold at the split-off point