Question 20

1. Applesoft produces tablets, laptops and televisions. Applesoft typically sells 1,000 tablets a year. The tablet information is as follows:

   Selling price per unit	$60
   Direct material cost per unit	$30
   Direct labor cost per unit	$15
   Total allocated overhead (1/4 avoidable if eliminate tablets)	$50,000

   One fourth of the allocated overhead would be avoidable if the tablets were eliminated.

   How much would Net Income change by if Applesoft were to eliminate the tablets?

   Be sure to include "-" in front of your amount if net income will decrease