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When multiple products share a constrained resource, the way to allocate the resource is to compute the a) profit per unit. b) opportunity cost per unit. c) contribution per unit. d) contribution margin per constrained resource. A study has been conducted to determine whether one of Parry Company's departments should be eliminated. The department's contribution margin is $50,000 per year. The fixed expenses charged to the department total $65,000 per year, an estimated $40,000 of those expenses would be eliminated if the department were discontinued. These data indicate that if the department were eliminated, the company's overall net operating income would: a) decrease by $10,000 per year. b) increase by $10,000 per year. c) decrease by $25,000 per year, I d) Increase by $25,000 per year. In a decision to add or eliminate a product or service, which one of the following is an avoidable expense? a) Depreciation b) Insurance on the building c) Variable overhead d) Allocated overhead a