Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides. c. Assume that in addition to the cost avoidance in b., the capacity released by discontinuance of the engineering division can be used to provide 9,600 new services that would have a variable cost per service of $58 and would require additional fixed costs totaling $115,200. At what unit price must the new service be sold if Bingham is to increase its total net income by $192,000 ? Round answer to two decimal places. Prepare a differential analysis to support your answer. b. Assume that discontinuance of the engineering division will enable the company to avoid 45% of the fixed portion of cost of services and 30% of the fixed operating expenses allocated to the engineering division. Calculate the resulting effect on net income. Round all calculated answers to the nearest dolla division were discontinued. (Amounts are given in thousands of dollars.) a. Assuming that total fixed costs and expenses would not be affected by discontinuing the engineering division, is the financial vice president's analysis correct? Joint Cost Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter follow: The revenues from each product are as follows: rent some special equipment costing $17,500 per quarter. Additional materials and labor also needed would cost \$12,650 per quarter. a. What is the gross profit currently being earned by the three products for one quarter? b. What is the effect on quarterly profits if the company decides to process Product A further