The Kelso Company has two divisions - Eastern and Westem. The divisions have the following revenues and expenses: Total Eastern Western Sales $850,000 $450,000 $400,000 Variable Cost 375.000 225.000 150,000 Contribution Margin 475,000 225,000 250,000 Direct Fixed Costs 235,000 130,000 105,000 Allocated Corporate Costs 215.000 120.000 95,000 Net Income (Loss) 25,000 (25,000) 50,000 The management at Kelso is pondering the elimination of the Eastern Division. If the Eastern Division were dropped, the division's direct fixed costs could be saved, but the total corporate costs for the company would remain unchanged. Given these data, the impact on net income of dropping the Eastern division would be: a. $95,000 Decrease O b. $45,000 Decrease O c. $25,000 Increase d. $75,000 Decrease Rogers Company produces three products, X, Y, and Z. Cost and revenue characteristics of the three products follow (per unit) Products Y Z Selling price $40 $32 $65 Less variable expenses: Direct Materials 12 8 20 Labor & Overhead 10 30 Total Variable 22 50 Contribution Margin $18 $8 $15 8 16 24 Demand for the company's products is very strong, with far more orders on hand each month than the company has raw materials available to produce. The same material is used in each product. The material cost $4 per pound, with a maximum of 8,000 pounds available each month. In what order should the company fill the demand for the three products ? a. Z, X, Y b. YX, Z O C. Y, Z, X d. X, Y, Z