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Question 41 Vaughn, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $15. while the cost of assembling each unit is esmated at $16. Unassembled units can be sold for $5?, while assembled units could be sold for $3") per unit. What decision should Vaughn make? Sell before assembly; the company will save $3 per unit. Sell before assembly; the company will save $12 per unit. Process further; the company will save $1 per unit. 0000 Process further; the company will save $13 per unit. Question 42 Sheridan Company gathered the following data about the three products that it produces: Estimated Sales Present Value before Additional Estimated Sales Product Processing Processing Costs if Processed Further A $9100 $6000 $16300 B 15300 5300 17700 C 11500 7600 15500 Which of the products should be processed further? O Product A O Product C O Product B O All three productsQuestion 43 Bramble Machines has four product lines, one of which reflects the following results: Sales $221000 Variable expenses 123000 Contribution margin 98000 Fixed expenses 123000 Net loss $(25000) If this product line is eliminated, 40% of the fixed expenses can be eliminated and the other 60% will be allocated to other product lines. If management decides to eliminate this product line, what will happen to the company's net income? It will increase by $25000. O It will decrease by $48800. O It will decrease by $23800. It will increase by $49200.Question 44 Smart Card is considering eliminating one of its product lines. The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance. What financial effects occur if the product line is discontinued? Net income will decrease by the amount of the contribution margin of the product line being discontinued. O The company's total fixed costs will increase. Total fixed costs will decrease by the amount of the product line's fixed costs. O Net income will decrease by the amount of the product line's fixed costs.Question 45 1Iu'aughn's Coffee can sell all the units it can produce of either latte or cappuccino but not both. Latte has a unit contribution margin of $51 and takes three machine hours to make and cappuccino has a unit contribution margin of $36 and takes two machine hours to make. There are 1290 machine hours available to manufacture a product. What should Uaughn's clo? 0 Make latte Iwhich creates $15 more prot per unit than cappuccino does. 0 Make cappuccino which creates $1 more prot per constraint than latte does. 0 Make cappuccino because more units can be made and sold than latte. O The same total prots exists regardless of which product is made. Question 46 Green Company sells its product for $11200 per unit. Variable costs per unit are: manufacturing, $7000; and selling and administrative, $120. Fixed costs are: $28800 manufacturing overhead, and $38800 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 2018-2020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under variable costing for 2020 is $36080. O $43080. O $41840. O $46640.Question 47 When units sold exceeds units produced O net income under absorption costing is higher than net income under variable costing. O net income under absorption costing is lower than net income under variable costing. O net income under absorption costing equals net income under variable costing. the relationship between net income under absorption costing and net income under variable costing cannot be predicted.Question 48 The Colin Division of Mochrie Company sells its product for $36 per unit. Variable costs per unit are: manufacturing, $15; and selling and administrative, $3. Fixed costs are: $280000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the manufacturing cost per unit be under absorption costing for each alternative? 40000_units 50000_units $15.00 $15.00 $18.00 $18.00 $20.60 $22.00 $22.00 $20.60Question 49 The Colin Division of Mochrie Company sells its product for $35 per unit. Variable costs per unit are: manufacturing, $14; and selling and administrative, $4. Fixed costs are: $280000 manufacturing overhead, and $58000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under absorption costing for each alternative? 40000_units 50000 units O $342000 $342000 $342000 $398000 $342000 $409600 O $398000 $342000Question 50 The Colin Division of Mochrie Company sells its product for $40 per unit. Variable costs per unit are: manufacturing, $15; and selling and administrative, $3. Fixed costs are: $280000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under variable costing for each alternative? 40000 units 50000_units O $550000 $550000 O $550000 $606000 $550000 $616000 $606000 $550000