sume that a company manufacture and seba vrely of producone which it was to as Prod.. A The company is considering dogging Product A because the income for the product is porting a necperating less is shown below. 5500,000 $240.000 $ 75,000 25, DDD 340,000 160,000 Sale variable expenses Varsale banufacturing expenses sales connaissons Shipping otat vaylable expenses WA Contribution rangin Tined x: Salary of product-line ting wert: Se for this product General factory overhead Deprecat.oc on equiprent Ince on this product inventari Perchasing department otal fled expenses Bet parating 1 $ 65, 35. 25.000 20.000 8.000 15,000 160, 8,000 $ 18,0001 Product And, the many time that it could produces actional units to product the contration incl le unit. The genertory with and purchasing department per common nate toate company les traces protects in total indoles as the location. The equipment used to menutacture Product does not wear out through use and then relevalue. What is the land tage dentew of cropping Product ? Null Chase 0 S431000 Son 5220 520000 Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit $ 9.50 10.00 2.80 5.00 1.70 4.50 $33.50 One of the company's raw material suppliers is experiencing a shortage that will last for three months. The company can respond to this shortage in one of two ways over the next three months. It has enough raw materials on hand to enable it to continue operating at 25% of normal output. The second option is to close down the plant for three months. Under this option, the company could avoid 40% of the fixed manufacturing overhead costs that it would ordinarily incur during this three-month period. Furthermore, its fixed selling expenses would continue at 30% of their normal levels during the three-month closure. How much total fixed cost will the company avoid if it closes the plant for three months? Multiple Choice $103,000 $87,000 $67,000 $123,000