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30. DPJ Inc. has two divisions, Alma and Nelson. Following is the income statement for the previous year: Alma Nelson Total Sales $560,000 $336,000 $896,000 Variable Costs 176,000 174,000 350,000 Contribution Margin 384,000 162.000 546,000 Fixed Costs (allocated) 284,375 170.625 455,000 Profit Margin 99,625 -8,625 91,000 What would DPJ 's profit margin be if the Nelson division was dropped? A. $99,625 profit B. $91,000 profit C. $384,000 profil D. $71,000 loss 31. Anvil Corp produces three products, and is currently facing a labor shortage. The selling price, costs, and labor requirements of the three products are as follows: Product A Product B Product C Selling price $50.00 $30.00 $40.00 Variable cost per unit $35.00 $10.00 $30.00 Direct labor hours per unit 1.5 3 2 Anvil has unlimited demand for all its products. Which product/s should Anvil Corp produce to maximize profit during the labor shortage? A. Product A only B. Product B only C. Product A and B D. Product A, B, and C 32. Nathan, Inc. sold 17,000 units last year for $50 each. Variable costs per unit were $20 for direct materials, $15 for direct labor, and $10 for variable overhead. Fixed costs were $10,000 in manufacturing overhead and $50,000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? c. What is the contribution margin ratio? d. If sales increase by 5,000 units, by how much will profits increase? 33. Pidal Corp had a margin of safety of $375,000 last month, with sales revenue of $1,000,000 and fixed costs of $250,000. a. What are break-even sales? b. What is the contribution margin ratio? c. How much profit did Pidal earn last month? d. How much would sales have to increase for Pidal to earn profit of 600,000