Question 43 (Mandatory) (1 point) The condensed income statement for a business for the past year is presented as follows: Sales Less variable costs Contribution margin Less fixed costs Income (loss) from oper. E $300,000 180,000 $120,000 50,000 $ 70,000 Product G $210,000 190,000 $ 20,000 50,000 $(30,000) $340,000 220,000 $120,000 40,000 $ 80,000 Total $850,000 590,000 $260,000 140,000 $120,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products Fand H. What is the amount of change in net income for the current year that will result from the discontinuance of Product G? $20,000 increase $30,000 increase $20,000 decrease $30,000 decrease Question 47 (Mandatory) (1 point) Romanzof Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base information, along with the estimated activity-base information, is provided below. Procurement Scheduling Materials handling Product development Production Activity Cost Activity Base $ 360,000 Number of purchase orders 240,000 Number of production orders 480,000 Number of moves 720,000 Number of engineering changes 1,420,000 Machine hours Number of Number of Purchase Orders 4,000 2,000 12,000 Number of Production Orders 300 150 800 Number of Moves 1,400 600 4,000 Number of Engineering Machine Changes Hours 10 2,000 5 8,000 25 10,000 Disk drives Tape drives Wire drives Units 2,000 4,000 2,500 Determine the activity-based cost for each tape drive unit. $192.00 $193.70 $285.80 $387.40 Question 41 (Mandatory) (1 point) Saved Which of the following is NOT a disadvantage of decentralized operation? Competition among managers decreases profits Duplication of operations Price cutting by departments that are competing in the same product market Top management freed from everyday tasks to do strategic planning