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THE FOLLOWING INFORMATION IS FOR THE PAXTON COMPANY FOR THE NEXT 2 INDEPENDENT QUESTIONS: 28. Management is considering dropping profit center B. If it is

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THE FOLLOWING INFORMATION IS FOR THE PAXTON COMPANY FOR THE NEXT 2 INDEPENDENT QUESTIONS: 28. Management is considering dropping profit center B. If it is discontinued, sales in profit center A will decrease by 10%. The discontinuation of profit center A would: a. increase Paxton's net income by $14,000. b. increase Paxton's net income by $1,000. c. increase Paxton's net income by $6,000. d. decrease Paxton's net income by $4,000. 29. Management is considering dropping profit center A. If it is discontinued, the selling price in profit center C will increase by 20%. The discontinuation of profit center A would: a. increase Paxton's net income by $14,000. b. increase Paxton's net income by $12,000. c. increase Paxton's net income by $10,000. d. increase Paxton's net income by $8,000

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