Question 3 5 pts Materials used by Superior Inc. in producing Department C's product are currently purchased from outside suppliers at a cost of $5.00 per unit. However, the same materials are available from Department A. Department A has unused capacity and can produce the materials needed by Department C at a variable cost of $3.00 per unit. A transfer price of $3.20 per unit is established and 40,000 units of material are transferred, with no reduction in Department A's current sales. Department C's operating income will increase by $50,000 $150,000 $72,000 $32,000 Calculator 5 pts Question 1 MC MR CE Smith company is preparing its cash budget. Its cash balance on April 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided: 7 8 4 5 April $1,061,200 984,500 May $1,182,400 1,210,000 June $1,091,700 1,075,000 Cash receipts Cash payments 1 2 0 The deficiency or excess cash amount (after considering the minimum cash balance required) for April is an) excess of $356,700 excess of $26,700 excess of $60,000 deficiency of $136,700 The condensed income statement for Chamberlain Corp. for the past year is as follows: Calculator 180000 Product MC MR MS M+ M- B C +1- $ 680.000 $320.000 0 Sales 7 8 9 Costs: 4 5 6 S(540,000) S(220,000) Variable costs 1 2 3 (145.000) _(40.000) 0 Fixed costs Total costs $(685,000 $(260.000) $ (5,000 $ 60,000 Income (loss) Chamberlain Corp. is considering the discontinuance Product A at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Product B. The amount of change in profit for the current year that will result from the discontinuance of Product A is a $140,000 decrease $140.000 increase $5,000 decrease $5,000 increase