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Power Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts

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Power Company produces 1,000 parts per year, which are used in the assembly of one of its products. The unit product cost of these parts is: Variable manufacturing cost ... $12 Fixed manufacturing cost......... 9 Unit product cost $21 ....... The part can be purchased from an outside supplier at $18 per unit. If the part is purchased from the outside supplier, one-third of the fixed manufacturing costs can be eliminated. The annual impact on the company's net operating income as a result of buying the part from the outside supplier would be: 39. The Belview Company has two divisions--East and West. The divisions have the following revenues and expenses: East_- West----- Sales $275,000 $250,000 Variable costs 138,000 100,000 Direct fixed costs 90,000 75,000 Allocated corporate costs.... 85,000 68,000 Net income (loss) ....... (38,000) 7,000 ...... The management of Belview is considering the elimination of the East Division. If the East Division were eliminated, the direct fixed costs associated with this division could be avoided. However, corporate costs would still be the same. Given these data, the elimination of the East Division would result in a new company net income (loss) of

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