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9. The following information relates to next year's projected operating results of the Consumer Division of Xampa Corporation: $1,800,000 Contribution margin Fixed expenses Net operating loss 2,100,000 ($300,000) If the Consume Division is eliminated, $1,600,000 of the above fixed costs expenses could be eliminated. What will be the affect on Xamps's profit next year if the Consumer Division is eliminated? a. $300,000 decrease b. $300,000 increase @ $200,000 decrease d. $200,000 increase 10. If a cost is a common cost of the segments on a segmented income statement, the cost should: a. Be allocated to the segments on the basis of segment sales B. Not be allocated to the segments c. Excluded from the income statement d. Treated as a product cost rather than as a period cost. 11. An unfavorable direct labor efficiency variance could be caused by: a. An unfavorable materials quantity variance An unfavorable variable overhead rate variance c. A favorable materials quantity variance d. A favorable variable overhead rate variance 12. Rameriz Company erred in selecting a denominator activity and chose a much higher level than was realistic. This error would most likely result in a large: a. Favorable variable overhead efficiency variance b. Favorable fixed manufacturing overhead budget variance Unfavorable overhead volume variance Unfavorable fixed manufacturing overhead budget variance 13. Costs which are always relevant in decision making are those cost which are: @ Variable b. Avoidable c. Sunk d. fixed

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