12. Bubblemania has three product lines - A, B, and C.A B C Total Sales $10,000Variable costs Contribution Margin Fixed costsNet income9,000 12,0007,000 6,0002,000 6,0006,000 3,00031,00017,50013,50012,5001,0004,5005,5003,5002,000 (4,000) 3,000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income?a. increase by $4,000 b. decrease by $4,000 c. increase by $2,000 d. decrease by $2,000 e. increase by $6,000

Eastlink 4? 1:12 AM >B 96% EM csunedu l l. The lnground Sprinkler Supply sells sprinkler systems suited for large or small yards. The company has decided to adopt an activity-based costing system. Last year the company incurred $ l,000,000 in overhead costs related to the following activities: Activity Allocation Base Overhead Cost Purchasing number of purchase orders $ 350 , 000 Material handling number of shipments received 200 , 000 Quality inspection number of inspections 450 , 000 The activities for large and small yard systems were as follows: Large Small purchase orders 15, 000 20, 000 shipments received 7, so 0 12 , soo inspections 11. 500 11, 000 If a customer requested a bid on a specially designed sprinkler that would probably require four inspections, how much quality inspection overhead would you include in the bid? a. S 0 b. 340 c. 380 d. 3120. e. 3160. 12. Bubblemania has three product lines - A, B, and C. & Q Q Total Sales s1o,000 9, 000 12, 000 31, 000 Variable costs 4 l 500 7:000 6 l 000 17 t 500 Contribution Margin s, 500 2, 000 s, 000 13 , 500 Fixed costs 3l soo 6:000 3 l 000 12 z 500 Net income 2. 000 (4, 000) 3. 000 1, 000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income? increase by $4000 decrease by 34'000 increase by $2.000 decrease by $2.000 increase by S6,000 she??? 13. Coed Novelties manufactures key chains for college bookstores. During 2003, the company had the following costs: Direct materials used $ 31 , 000 Direct labor 18 , 000