there are 3 questions , each question is followed with its answers.

Cotton Corp. currently makes 10,000 subcomponents a year in one of its factories. The unit costs to produce are Per unit $32.50 Direct materials Direct labor 13.00 19.50 Variable manufacturing overhead Fixed manufacturing overhead 26.00 $91.00 Total unit cost An outside supplier has offered to provide Cotton Corp, with the 10,000 subcomponents at an $84.50 per unit price. Fixed overhead is not avoidable. What is the maximum price Cotton Corp. should pay the outside supplier? Multiple Choice $65.00 $84.50 An outside supplier has offered to provide Cotton Corp. with the 10,000 subcomponents at an $84.50 per unit price. Fixed overhead maximum price Cotton Corp. should pay the outside supplier? Multiple Choice $65.00 $84.50 O $91.00 $58.50 Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Sales Myrtle Laurel Total $561,800 $338,000 $899,800 Variable Costs 178,100 175,800 353,900 383,700 162,200 545,900 Contribution Margin. Fixed Costs (allocated) 286,275 172,625 458,900 Profit Margin $ 97,425 $(10,425) $ 87,000 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice O $97,425 profit $87,000 profit $383,700 profit $75,200 loss Davenport Inc. has two divisions, Howard and Jones. Following is the income statement for the past month: Howard Jones Total Sales $753,500 $753,500 $1,507,000 496,850 678,150 $1,175,000 Variable Costs $256,650 Contribution Margin Fixed Costs (allocated) $75,350 $ 332,000 170,650 170,650 341,300 Profit Margin $ 86,000 $(95,300) $ (9,300) What would Davenport's profit margin be if the Jones division was dropped? What would Davenport's profit margin be if the Jones division was dropped? Multiple Choice O $9,300 loss $84,650 loss $86,000 profit $161.350 profit