r eosts perpjonents for theanufactures electrie scooters. The company currently makes all of t are as followster itseWhen 1o,ooo motors are manufactured each year, Hentcon endernderson Manufacturing Ine. the electronie components the motor costs per unit Manufacturing Inc. Direct materials Direct labor $5 Varlable overhead 2 Fixed overhead 7 Plymouth Ine. has offered to sell Henderson 10,000 motors for $14 Per uld be avoided. could be avoided. the offer, 50% of the fixed overhead currently allocated to the motors c Refer to the Henderson Manufacturing inc. Henderson manufacturing the motors themselves? a. $19.00 b. $15.50 c. $14.0o d. $15.20 information above. What are the relevant costs per unit of 35. A particular product line should not be dropped if: a. its avoidable fixed costs are less than its contribution margin. b. its total fixed costs are more than its contribution margin. c. its unavoidable fixed costs are more than its contribution margin. d. its variable costs are more than its fixed costs. 36. Tremaine Inc. has three product lines: A, B, and C. C Iotal $55,000 $90,000 $95,000 $240,000 37.000 40,000 45,000 122.000 Sales Variable costs Contribution margin 18,000 50,000 50,000 118,000 Fixed costs Net income 23,000 20,000 30,000 73,000 $(5,000) $30,000 $20,000 $45,000 Management is considering dropping product line A. If it is discontinued, $14,000 of its fixed costs can be avoided. The discontinuation of product line A would: a. increase net income by $21,000. b. decrease net income by $4,000. c. increase net income by $4,000. d. decrease net income by $15,000