Bill's Roofing is trying to decide whether to keep or drop its Wood shingles product line. Monthly sales and cost information are below Total $ 140,000 80.000 60.000 Product Line Metal Wood $ 80.000 $ 60,000 45.000 35.000 35.000 25.000 Sales Variable expenses Contribution margin Fixed expenses Salaries Advertising Utilities Depreciation Rent Total Fixed Expenses Net operating income loss 8,000 4,500 1.000 14.000 9.000 2.500 4,000 27.000 56.500 6,000 4,500 1 500 1.500 12,000 25.500 2.500 15,000 31.000 $.3.500 54.000 $15.00 Additional Information 1. Salaries are paid to employees working directly on the specific product. 2. Advertising costs are specific to each product and are avoidable if the line is dropped. 3. Utilities are for the entire company and are allocated to products based on the space occupied in the factory, 4. Depreciation is for previously purchased equipment and is specific to each product line. The equipment cannot be resold. 5. Rent is for the entire building and is allocated to product lines based on sales dollars. How will Bills net operating income change if the Wood shingles product line is dropped? Increase by 5500 Decrease by $14.500 Decrease by $25.000 Increase by $13.000 Kyle is trying to decide which one of two job offers he will accept. Several items about each job offer are presented below: Job Offer #2 $ 50,000 (1) Base Salary (2) Overtime compensation (3) Moving allowance (4) Signing bonus (5) Job search costs already incurred Job Offer #1 $ 50,000 None $ 3.000 $ 2.000 $ 300 Hourly rate $ 3,000 $0 $ 500 Select the items that are irrelevant to Kyle's decision (21.(4) O (21. (3), (4) (1), (3), (5) (1) (2) (3).(4.(5) If a company produces more units than they sell in a period (e. inventories increase), which of the following is true? Absorption Costing Net Operating Income > Variable Costing Net Operating Income Absorption Costing Net Operating Income - Variable Costing Net Operating income Absorption Costing Net Operating Income