Please show detailed work

Exercise E

Analysis of Hair Care Companys citrus hair conditioner reveals that it is losing $5,000

annually. The company sells 5,000 units of citrus hair conditioner each year at $10 per unit. Variable

costs are $6 per unit. None of the companys fixed costs would be saved if the citrus hair conditioner

were eliminated. What would be the increase or decrease in company net income if citrus hair

condition were eliminated?

Exercise F

The luggage department of Sampson Company has revenues of $1,000,000; variable

expenses of $250,000; direct fixed costs of $500,000; and allocated, indirect fixed costs of $300,000

in an average year. If the company eliminates this department, what would be the effect on net

income?