Question 71 (1.25 points) A company can produce and sell only one of the following two products: Machine Hours Contribution Required Per Unit Margin Per Unit Product 1 2.5 $35 Product 2 $50 If the company has machine capacity of 3,000 hours, what is the total contribution margin of the product it should produce in order to maximize net income? 0 $42,000 Onone of these O$105,000 O $78,500 O $37,500 Question 70 (1.25 points) Chunnel Company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses $215,000 $125,000 $90,000 $140,000 $(50,000) Net loss If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will Onone of these O increase by $50,000 O decrease by $90,000 O increase by $6,000 O decrease by $6,000 Question 69 (1.25 points) Tsai Company gathered the following data about the three products that it produces: Present Estimated Additional Estimated Sales Product Sales Value if Processed Further Alpha $18,000 Processing Costs $2,000 $7,000 $7,000 $14,000 $15,000 $20,000 Beta $21,000 Delta $29,000 Which of the products should not be processed further? O Product Alpha O Product Beta O Product Delta O Products Alpha and Delta O none of these Question 68 (1.25 points) Steeley Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials $120,000 Direct Labor $25,000 $45,000 Variable Overhead Fixed Overhead $30,000 If Steeley Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision in order to maximize net income? O Make and save $5,000 O Make and save $15,000 O Buy and save $5,000 O none of these O Buy and save $15,000