Alta Loma Industries has three product lines, A, B, and C. The following information is available: A B C Sales $100,000 $90,000 $36,000 Variable costs 76,000 48,000 27,000 Contribution margin $24,000 $42,000 $9,000 Fixed costs: Avoidable 9,000 18,000 3,000 Unavoidable 6,000 9,000 8,400 Operating income $9,000 $15,000 $(2,400) Assume that product line C is discontinued and replaced with product line B. This will double the production and sales of product line B without increasing fixed costs. Operating income will:.

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $