QUESTION 18 Camera Corner is considering eliminating Model AE2 from its camera line because of losses over the past quarter. The past three months of information for Model AE2 are summarized below: $370,000 Sales (1100 units) Manufacturing costs: Direct materials Direct labor ($15 per hour) Overhead Operating loss 150,000 100,000 110,000 ($10,000) Overhead costs are 75% variable and the remaining 25% is depreciation of special equipment for model AE2 that has no resale value. If Model AE2 is dropped from the product line, operating income will increase by $27,500 increase by $10,000 decrease by $37,500 decrease by $10,000 QUESTION 20 Jupiter Corporation incurred fixed manufacturing costs of $18,000 during 2015. Other information for 2015 includes: The budgeted denominator level is 2200 units Urits produced total 1800 units Units sold total 160 0 units Variabe cost per unit is $4 Beginning inventory is zero. The fixed manufacturing cost rate is based on the budgeted denominator level. Under absorption costing, total manufacturing costs expensed on the income statement (excluding adjustments for variances) total $30,454.5455 $13,090.9091 $19,490.9091 $23,090.9091