* Your answer is incorrect. Vicade has 1,000 commercial video game machines in inventory produced at a cost of $400 each (60% variable and 40% fixed). The machines were to have been sold for $1,000 each. However, the machines currently contain a minor malfunction reducing their selling price to $150 each. The company could correct the malfunction at a variable cost of $250 each and then sell the machines for $550 each. For purposes of determining whether the machines should be reworked, what is the opportunity cost per unit? $150 $200 $240 $400 X| Your answer is incorrect. The managers of Adamson Apple Co. are considering dropping one of their product lines. The product line typically has the following revenue and costs: Sales Variable costs Contribution margin $100,000 80,000 20,000 25,000 $(5,000) Fixed costs Operating loss If the product line is discontinued, $4,000 of the fixed costs would be avoided. Also, the freed-up capacity would generate $4,000 of additional contribution margin from the expansion of other product lines. If Adamson discontinues the product line, the effect on overall income will be: x $12,000 decrease $8,000 decrease $9,000 increase $3,000 increase