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Hodge Incorporated has some material that originally cost 574,600 . The material has a scrap value of $57.400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap? ($79,100) ($4,500) ($21,700) $52,900 Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they can focus on online games, Below is a segmented income statement for the in-store games division. Sales and variable expenses are traceable directly to the in-store games segment. If the in-store division were dropped, what would be the effect on the company related to variable expenses? Not relevant to this decision $(90,600) $90,600 $0 Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they can focus on online games. Below is a segmented income statement for the in-store games division. All of the administrative expenses are for administrative functions that service both divisions. These expenses would not be eliminated if the in-store division were dropped. If the in-store division were dropped, what would be the effect on the company related to administrative expenses? Not enough information to determine $(18,990) $0 $18,990 Games Inc. has two product lines, online games and in-store games. They are considering dropping the in-store games divisions so they can focus on online games. Below is a segmented income statement for the in-store games division. Of the general expenses, $15,500 are for rent and maintenance, which would not be eliminated if the in-store segment were dropped. The remaining general expense are traceable to the in-store games division and would be eliminated. If the in-store division were dropped, what would be the effect on the company related to general expenses? $15,500 $6,100 $(15.500) $(6,100) Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10 : direct labor, $1.20; and manufacturing overhead $4.50. Cincinnati Children's Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children's Hospital for $12 each? \begin{tabular}{|c|} \hline$(140) \\ \hline$140 \\ $(440) \\ \hline$440 \\ \hline \end{tabular}