Simpson Corporation operates two divisions with the following operating results from last year: Eastern Division $300,000 $200,000 Western Division $620,000 $310,000 $310,000 $110,000 $90,000 $110.000 Sales Variable costs Contribution margin Avoidable fixed costs Allocated common fixed costs Operating income (loss) $100.000 Total $920.000 $510.000 $410,000 $180,000 $135.000 $95.000 $70,000 $45.000 ($15,000) Management is considering whether the Eastern Division should be discontinued since it incurred an operating loss last year. Allocated common fixed costs would continue for Simpson Corporation whether the division is discontinued or not. If the Eastern Division had been discontinued at the beginning of last year, what would the total operating income for Simpson Corporation have been for the year? O A. $30,000 O B. $110,000 O C. $65,000 OD. $15,000 The following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit $105 Total fixed manufacturing costs $525,000 Variable marketing and administrative costs per unit $32 Total fixed marketing and administrative costs $250,000 The regular selling price per chaise lounge is $350. The company is analyzing the opportunity to accept a special sales order for 300 chaise lounges at a price of $210 per unit. Variable marketing and administrative costs would be $15 per unit lower than on regular sales. Fixed costs would increase by $15,000. The company has the capacity to produce 115,000 chaise lounges per year, but is currently producing and selling 13,000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? O A. Decrease by $26,400 OB. Decrease by $11,400 OC. Increase by $26,400 OD. Increase by $11,400 Which of the following is not a question that managment needs to consider when deciding to process a product further or sell as is? O A. How much extra will it cost to process the product further? O B. How much revenue will we receive after we process the product further? OC. How much revenue will we receive if we sell the product as is? OD. How much storage space will the product take up if we don't process it further