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Question 20 O out of 0.5 points Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Total unavoidable allocated overhead How much would Net Income decrease if Microhard were to eliminate the tablets? DO NOT INCLUDE $ SIGNS, PARENTHESES, OR NEGATIVE SIGNS IN YOUR ANSWER $70 $30 $10 . $47,000 Selected Answer: [None Given] Correct Answer: 30,000 Response See Module 7, LO 7.4 Continue or Eliminate Decisions Feedback: Should the product be eliminated, the company will lose the contribution margin. In this example, the allocated overhead is unavoidable and thus is irrelevant to the decision. If some of the overhead is avoidable, then the loss in contribution margin should be compared to the savings in overhead. If the contribution margin is less than the savings, then the product should be eliminated. Click Here for Similar Example in YouTube