The following information is available for a company's maintenance cost over the last seven months. Month Maintenance Cost Units Produced June 180 $ 10,900 July 360 13,800 August 240 10,200 September 300 12,000 October 420 13,800 November 480 16,200 December 120 7,200 Using the high-low method, the variable component of its maintenance cost is: Multiple Choice O $30.00 per unit. $25.00 per unit. $22.50 per unit. $22.00 per unit. $16.11 per unit. Information for two alternative projects involving machinery investments follow. The accounting rate of return for Project 1 is: Year Project 1 Initial investment $ (330,000) Salvage value Annual income 0 33,000 Project 2 $ (270,000) 29,000 33,000 Multiple Choice 24.4%. 11.4%. 20.0%. 22.8%. 10.0%. An opportunity cost: Multiple Choice Is irrelevant in decision making because it occurred in the past. Is the potential benefit lost by taking a specific action instead of alternative actions. Requires a future outlay of cash. Is an unavoidable cost because it remains the same regardless of the alternative chosen. Results from past managerial decisions. Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $46,000 as shown below. Segment Income (Loss) Sales $ 976,000 Variable costs 483,000 493,000 Contribution margin Fixed costs Income (loss) 539,000 $ (46,000) If the backpack division is dropped, all $483,000 of its variable costs are avoidable, and $215,600 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be: Multiple Choice $277,400 increase $277,400 decrease $215,600 increase $493,000 increase $493,000 decrease