Section V A company expects its three departments to yield the following income for next year: Dept. X Dept. Y Dept. Z Sales $94,000 $15,000 $70,000 Expenses 71,000 2,000 52,000 4,000 7,000 20,000 75,000 9,000 72,000 Net income (loss) $19,000 $6,000 ($2,000) Avoidable Unavoidable Total expenses Required: Compute the following independent calculations: a. The effect on total company income if Dept. X is eliminated. b. The effect on total company income if Dept. Y is eliminated. c. The effect on total company income if Dept. Z is eliminated. d. Should any of these departments be eliminated? Why of why not? Section VI A company produces three different products that all require processing on the same machines. There are only 17,000 machine hours available in each year. Production information for each product is Sales price per unit Variable costs per unit Machine hours necessary to produce one unit $22.00 $34.00 $46.00 $10.00 $19.00 $25.30 0.75 1.2 23 Required a. Determine the preferred sales mix if there are no market constraints on any of the products. b. Determine the preferred sales mix if the demand is limited to 7,000 units for each product. c. Determine the preferred sales mix if the demand is limited to 8,000 units for each product