operating income for the company and if they should drop the soccer ball line as it appears to be unprofitable. The folowing Information is available for last quarter's results 6. The Kicker Sports Company makes two products, soccer balls and footballs. The company is concerned about the Soccer Balls 5200,000 Fotballs $350,000 Variable Expenses 160,000 210.000 140,000 Contribution Margin ,000 Product Supervisor Salary 40,000 42,000 Operating Income $(30,000) $68,000 evenly bet Assume that common fixed costs soccer ball division was dropped from the ball division? are allocated evenly between the departments and would decrease by 20% if the company . What would be the company wide income if they drop the soccer A. $12,000 B. $50,000 C. $30,000 D. $38,000 The total cost of . Roberts Electronics uses a standard part in the manufacture of different types of computers. producing 36,000 parts is $110,000, which includes fixed costs of $50,000 and variable costs of $60,000. The company can buy the part from an outside suppler for S1 per unit and el rate 30% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $16,000. Roberts outsources, what will be the effect on operating income? A increase of $55,000 B. decrease of $55,000 C. decrease of $15,000 D. increase of $16,000 Use the following information to answer problems & (Lumber) and 9 (Scrap) NW Sawmill buys logs and then runs them through a saw that produces unfinished lumber and scrap (Le., sawdust, chips, and bark). The cost of the log and the initial processing costs $200. The unfinished lumber can be sold "as is or processed further into treated lumber. The scrap can also be sold "as is" to gardening supply wholesalers or processed further. Data concerning these joint products appear below Per Log Lumber Scrap Sales Value at Split-off Sales Value After further processing Further processing costs $140S $270 550 $20 516 What is the impact on operating income if the company decides to process each product. 8. Lumber A. Profit of $80 B Profit of $130 C. Loss of $80 D. Loss of $50 9. Scrap A. Loss of $16 8. Proft of $25 D. Loss of $1 D. Profit of $1 0. True (A) or False (8):Opportunity Cost refers to the benefit given up by choosing an alternative course of action