TB MC Qu. 10-111 (Algo) Sammy Company is considering... Sammy Company is considering eliminating Its Commercial division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avoidable, and $115,000 of Its fixed costs are avoidable. The Impact on Sammy's operating income from eliminating the commercial division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Multiple Choice O $8,200 decrease $15,000 increase $42,800 increase $5,000 increase $42,800 decrease Garden $ 688,000 387,900 300,100 262,200 37,900 Farm $ 965,000 429,000 536,000 350,500 185,500 Commercial $ 737,000 664,800 72,200 310,400 (238,200)

TB MC Qu. 10-111 (Algo) Sammy Company is considering... Sammy Company is considering elliminating its Commerclal division. The company allocates fixed costs based on division sales. If the Commercial division is dropped, all of its variable costs are avoidable, and $115.000 of Its fixed costs are avoldable. The impact on Sammy's operating income from eliminating the commercial division would be: Multiple Choice $8,200 decrease $15,000 increase $42.800 increase $5.000 increase $42800 decrease TB MC Qu. 10-114 (Algo) Galla Incorporated is a competitive product... Galla Incorporated is a competitive product market. The expected selling price is $395 per unit, and Galla's target profit is 20% of the selling price. Using the target cost method. the highest that Galla's cost per unit can be is: Multiple Choice 5252 $236 $308 579. $316