QUESTION 18 North Division has the following information: Sales $1,600,000 Variable expenses 1,380,000 Fixed expenses 800,000 If this division is eliminated the fived expenses will be allocated to the company's other divisions. What is the incremental effect on net income if the division is dropped? A. $420,000 increase B. $800,000 increase OC. $220,000 decrease D. $580,000 decrease QUESTION 19 It costs Dryer Company 524 per unit (516 variable and $8 fixed) to produce its product, which normally sells for 538 per unit. A foreign wholesaler offers to purchase 5,000 units at $21 each. Dryer would incur special shipping costs of $2 per unit if the order were accepted. Dryer has sufficient unused capacity to produce the 5,000 units. If the special order is accepted, what will be the effect on net income? A. $55,000 increase B. 585,000 decrease C. $10,000 increase D. $15,000 increase QUESTION 20 Capitol Manufacturing sells 5,000 units of Product A annually, and 10,000 units of Product B annually. The sales mix for Product Ais A. 67%. B. 33%. C.25%. D. 50%. QUESTION 21 Cunningham, Inc. sells MP3 players for $70 each. Variable costs are $20 per unit, and fixed costs total $120,000. How many MP3 players must Cunningham sell to earn net income of 5160,000? A. 5,600 B. 2,000 C. 2.400 D. 3,200