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0 Requirements STUTTOTT 2. The division manager of Division B received the following operating income data for the past year: Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $8,000. a. Prepare a differential analysis to show whether Division B should drop the T205 product line. b. What is your recommendation to the manager of Division B? 3. Division C also produces two product lines. Because the division can sell all of the product it can produce, Deeler is expanding the plant and needs to decide which product line to emphasize. To make this decision, the division accountant assembled the following data: (Click the icon to view the Division product data.) After expansion, the factory will have a production capacity of 4,300 machine hours per month. The plant can manufacture either 35 units of K707s or 54 units of G582s per machine hour. a. Identify the constraining factor for Division C. b. Prepare an analysis to show which product line to emphasize. 4. Division D is considering two possible expansion plans. Plan A would expand a current product line at a cost of $8,450,000. Expected annual net cash inflows are $1,600,000, with zero residual value at the end of 10 years. Under Plan B, Division D would begin producing a new product at a cost of $8,100,000. This plan is expected to generate net cash inflows of $1.120.000 per vear for 10 vears, the estimated useful Print Done i Data Table Product Line T205 B179 Total 370,000 $ 430,000 $ 800,000 $ Net Sales Revenue Cost of Goods Sold: Variable 39,000 270,000 48,000 62,000 87,000 332,000 Fixed 309,000 110,000 419,000 61,000 320,000 381,000 Sin TNTTOTT Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable Fixed 67,000 45,000 112,000 (51,000) $ 78,000 145,000 22,000 67,000 100,000 212,000 220,000 $ 169,000 Total Selling and Administrative Expenses Operating Income (Loss) $ Print Done The division manager of Division B received the following operating income data for the past year: (Click the icon to view the Division B operating income data.) The manager of the division is surprised that the T205 product line is not profitable. The division accountant estimates that dropping the T205 product line will decrease fixed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $8,000. 2a. Prepare a differential analysis to show whether Division B should drop the T205 product line. (Enter decreases to profits with a parentheses or minus sign.) Expected decrease in revenues -370000 Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected decrease in operating income Choose from any list or enter any number in the input fields and then click Check Answer 5 parts remaining Clear All 1 Check

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