Transcom Corporation sells three intercom systems, the deluxe model, the superior model and the regular model. The profit report for these intercom systems for the most recent period is shown below by product line. The facility sustaining costs are fixed and allocated equally between each of the three product lines. Should Transcom Corporation drop the superior model? A. Yes. The superior model is operating at a loss. B. Yes. The regular model should also be dropped. C. No. The superior model is generating revenue of $95.000. D. No. The revenues lost are greater than the costs saved. A company produces a single product. Last year, fixed manufacturing overhead was $30,000, variable production costs were $48,000, fixed selling and administration costs were $20.000, and variable selling expenses were $9, 600. There was no beginning inventory. During the year, 3,000 units were produced and 2, 400 units were sold at a price of $40 per unit. Under variable costing, contribution margin would be: A. $52, 800 B. $48,000 C. $49, 920 D. $57, 600 Under variable costing, net operating income (loss) would be: A. A profit of $4,000 B. A loss of $80 C. A profit of $2,000 D. A loss of $2,000 Under absorption costing, gross margin would be: A. $33, 600 B. $27, 600 C. $49, 920 D. $57, 600 Under absorption costing, net operating income (loss) would be: A. A profit of $4,000 B. A profit of $8, 920 C. A profit of $2, 120 D. A loss of $2,000