Damon Industries manufactures 20,000 components per year. Th…

Damon Industries manufactures 20,000 components per year. The manufacturing costs of the components was determined as follows:   Direct materials$ 100,000   Direct labor 160,000   Variable manufacturing overhead 60,000   Fixed manufacturing overhead 80,000  An outside supplier has offered to sell the component for $17. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on operating profits would be a:

The operations of Bridgeton Corporation are divided into the…

The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows:   Adams DivisionCarter Division Total   Sales$ 560,000$ 336,000$ 896,000   Variable costs 196,000 154,000 350,000   Contribution margin$ 364,000$ 182,000$ 546,000   Direct fixed costs 168,000 140,000 308,000   Segment margin$ 196,000$ 42,000$ 238,000   Allocated common costs 84,000 63,000 147,000   Operating income (loss)$ 112,000$ (21,000)$ 91,000  Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be: