Spls. Accounting 2120 Differential Analysis Assignment 1 hine Bright Company has three product lines-D, E, and F. The following information is available: Short term making decision . E over alliniane opportunity D F Sales $60.000 $38,000 $26.000 Variable costs 36.000 18.000 12.000 Contribution margin 24,000 20.000 14,000 Fixed expenses 12.000 15.000 16.000 Operating income (loss) $12.000 $5.000 $(2.000) Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and does not eplace it, what effect will this have on operating income? Should they drop Product F? **Show your work to support your answer. Shine Bright Company has three product lines-D, E, and F. The following information is available: E Sales Variable costs Contribution margin Fixed expenses Operating income (loss) D $60,000 36.000 24,000 12.000 S12.000 $38,000 18.000 20.000 15.000 S5.000 F $26.000 12.000 14,000 16,000 S(2.000) Shine Bright Company is thinking of dropping product line F because it is reporting an operating loss. Assuming fixed costs are unavoidable, if Shine Bright Company drops product line F and can use the Epace formerly used to produce product-F to generate $17,000 of net income per year, what effect will his have on operating income? Should they drop Product F? **Show your work to support your answer. Lincoln Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials S3 Direct labor (variable cost) S Variable manufacturing overhead 4 Fixed manufacturing overhead Total cost SIC Erickson Company has offered to sell 5.000 units of the same part to Lincoln Company for $13 per unit Assuming the company has no other use for its facilities and that the fixed manufacturing costs are unavoidable, what should Lincoln Company do, make it or buy it? **Show your work to support your answer ufacture