of sandard coing e all of the following C Useful lerical sosts due to more complex costing of inventory commp 14 Abel ny pruces thue versions ofbll bats wonod, sluminum, and hard nubbr egmented income statement for recent period follows gtal 765,000 Sales $500,000 175,000 00002 $200,000 s 65,000 Contribution margin ised expenses Net income (loss) 242,000 132.09 7,000 60,000 5.000 35.000 the V Ausume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if Rubber line is dropped? A. $103,000 B. 5105,000 C. $125,000 D. $140,000 1S. Nonfinancial information that management might evaluate in making a decision would not A. employee turnover B. contribution margin C. the environment. D. the corporate profile in the community. 16. In an equipment replacement decision, the cost of the old equipment is a(o) A. incremental cost. B. sunk cost. C. relevant cost D. opportunity cost 17. The payback method is criticized on the grounds that it: 4. R A. ignores obsolescence factors. B. ignores the cost of an investment C. is complicated to use. D. ignores the time value of money. B. C. 18. The capital budgeting technique that finds the interest yield of the potential investment is the a. annual rate of return method. b. internal rate of return method. c. net present value method. d. profitability index method le