28 Management is considering dropping product line A If it is discontinued, $18,000 of its fixed costs are DTFC can be avoided The discontinuation of product line A would a increase Tremaine net income by $13,000 b increase Tremaine net income by $21,000 c decrease Tremaine net income by $2,000 d increase Tremaine net income by $2,500 29 Management is considering dropping product line A If it is discontinued, (1) all of its fixed costs are common FC cannot be avoided and (2) sales of Product B will increase by 60 The discontinuation of product line A would a increase Tremaine net income by $13,000 b increase Tremaine net income by $21,000 c decrease Tremaine net income by $2,000 d increase Tremaine net income by $2,500 30 Management is considering dropping product line A If it is discontinued, (1) all of its fixed costs are common FC cannot be avoided and (2) the selling price of Product C will increase by 25 The discontinuation of product line A would a increase Tremaine net income by $13,000 b increase Tremaine net income by $21,000 c decrease Tremaine net income by $2,000 d increase Tremaine net income by $2,500 31 In resource utilization (Product Mix) decisions, managers should a minimize the contribution margin per unit b minimize the use of the scarce resource c maximize the contribution margin per unit of scarce resource d maximize the contribution margin per unit

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Question: 28.Management is considering dropping product line A. If it is discontinued, $18,000 of its fixed costs are DTFC & can be avoided. The discontinuation of

28.Management is considering dropping product line A. If it is discontinued, $18,000 of its fixed costs are DTFC & can be avoided. The discontinuation of product line A would:

increase Tremaine net income by $13,000.

increase Tremaine net income by $21,000.

decrease Tremaine net income by $2,000.

increase Tremaine net income by $2,500.

29.Management is considering dropping product line A. If it is discontinued, (1) all of its fixed costs are common FC & cannot be avoided and (2) sales of Product B will increase by 60%. The discontinuation of product line A would:

increase Tremaine net income by $13,000.

increase Tremaine net income by $21,000.

decrease Tremaine net income by $2,000.

increase Tremaine net income by $2,500.

30.Management is considering dropping product line A. If it is discontinued, (1) all of its fixed costs are common FC & cannot be avoided and (2) the selling price of Product C will increase by 25%. The discontinuation of product line A would:

increase Tremaine net income by $13,000.

increase Tremaine net income by $21,000.

decrease Tremaine net income by $2,000.

increase Tremaine net income by $2,500.

31.In resource utilization (Product-Mix) decisions, managers should:

minimize the contribution margin per unit.

minimize the use of the scarce resource.

maximize the contribution margin per unit of scarce resource.

maximize the contribution margin per unit.

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