Question: Question 1 5 pts Spring Inc. has two divisions, Flowers and Trees. Following is the income statement for the past month: Flowers Trees Total Sales

 Question 1 5 pts Spring Inc. has two divisions, Flowers and

Question 1 5 pts Spring Inc. has two divisions, Flowers and Trees. Following is the income statement for the past month: Flowers Trees Total Sales $360,000 $320,000 $680,000 Variable Costs 280.000 150.000 430.000 Contribution $80,000 $170,000 $250,000 Fixed Costs 132.000 100.000 232.000 Net Income (552,000) $70,000 $18,000 The fixed costs are allocated and common to the company divisions. What would the new TOTAL net income for the company be if the Flowers division is dropped? ($80,000) $34,000 $62,000 O ($62,000) Question 2 5 pts Eagle corporation has 8,000 units of a product that are carried in inventory at a cost of $160,000. The units are obsolete and cannot be sold in their current condition. of the units are remachined for a total cost of $50,000 they could be sold for $72,000. Alternatively, the units could be sold as is as scrap for $28,000. Which alternative is better and what is the incremental profit of that decision

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