Question 23 12.5 points Save Answer Pool Inc is considering dropping its water toy department due to continued net operating losses. Results for the most recent year for the water toy department is shown below: Amount Description Sales (4,000 units) Variable expenses Contribution margin $64,000 $44,000 $20,000 Fixed expenses $30,000 Net operating loss ($10,000) If the water toy department were discontinued, the company would still incur $12,000 per year of fixed costs. The remainder of the fixed costs are avoidable. The annual financial advantage (disadvantage) for the company from discontinuing the production and sales of the water toy department would be: OA. $2,000 disadvantage O B. $2,000 advantage O C. $8,000 disadvantage OD. $8,000 advantage Question 24 12.5 points Save Answer The following are Hydrangea Company's cost of making and selling an item: Description Direct materials Direct labor Amount per unit $7 $5 $1 $8 Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative Fixed selling and administrative $4 $2 A one-time only special order has been received for 800 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is $20 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $4 per unit for specialized materials and a new machine that costs $5,000. What is the financial advantage or disadvantage of accepting the special order? OA. $5,800 disadvantage $800 disadvantage OB. C. $2,600 disadvantage $600 advantage OD