The tax department for McDonald's Inc. is likely to be considered a cost centre. I E\\::J a} True (3) b] False Question 24 (3 points) JBC, Inc. produces 10,000 binders each year. Each binder has a variable cost of $12. Total fixed costs are $80,000 per year. The binders can be purchased from an outside supplier for $14 each. All fixed costs are unavoidable. If the binders are outsourced, what is the impact on the company's operating income? /H\\ ['4] a] Operating income will increase by $20,000 '1.) bl Operating income will decrease by $40,000 /\\ [\\J C) Operating income will increase by $40,000 I \\ ['4] dl Operating income will decrease by $20,000 A company that sells agricultural products would emphasize a ta rget-costing approach to pricing its products. L} a} True L} b] False Question 26 (2 points) Which of the following statements is an accurate description of asset turnover? /'_\"\\ K...) a} It measures the return generated on average assets. / '\\. L} b] It measures the income earned above stakeholders' expectations. L} c) It measures the efficiency of operations in generating sales. K...) d) It measures the income generated on each sales dollar