TB MC Qu. 10-108 Volber Company is considering eliminating... Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped $150,000 of the fixed costs allocated to that division could be eliminated the impact on Valber's operating income from eliminating the phone division would be Sales Variable costs Contribution margin Fixed costs Net income (los) Desktops $356,000 201,000 155,000 71,200 83,800 Laptops $871,500 635,000 236,500 174,300 62,200 Tablet Phones $694,800 $975,000 528,000 795,000 166,000 180,000 138,800 195,000 27,200 (15,000) Multiple Choice S0000 TB MC Qu. 10-117 Hordel Company needs to determine... Hordel Company needs to determine a markup for a new product. Hordel expects to sell 5,000 units and wants a target profit of $82 per unit. Additional information is as follows: Variable product cost per unit Variable administrative cost per unit Total fixed overhead Total fixed administrative $ 79 21 42,000 31,800 Using the variable cost method, what markup percentage to variable cost should be used? Multiple Choice 801 TB MC Qu. 10-70 Graham Corp. has... Graham Corp has 1000 cartons of oranges that were harvested at a cost of $26,500. The oranges can be sold as is for $30.000 The oranges can be processed further into orange juice at an additional cost of $12,500 and be sold at a price of $46,000. The net benefit addnional income from processing the oranges into orange juice instead of selling as is would be: Multiple Choice 515.000 $16.000 SUSO TB MC Qu. 10-76 Poxton Company can produce a component of... Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, 510; direct labor $14. variable overhead $3 and fixed overhead $8. An outside supplier has offered to sell the product to Paxton for $32. Compute the net Incremental cost or savings of buying the component Multiple Choice 5500 savings per unit 5300 Cooper unit So cost of signer un