Savings 50,000.

00
CM Lost (48,000.00)
Increase(decrease) in net income 2,000.00

Chile
Profit 20,000.00
Divide: Units 10,000.00
UCM 2.00
Variable Cost 3.00
Selling price 5.00

G industry
Relevant costs 10.50 < Direct material , Direct Labor, Variable overhead
Purchase Price (13.50)
Loss per Unit (3.00)
Divide: machine hours 3.00
Loss per machine hour (1.00)

M Company
Sales Price 7.00 Sales Price
Variable COGS (6.50) Variable COGS
Variable Operating expenses (1.00) Variable Operataing expenses
Loss per unit forgone 0.50 Income per unit Forgone
Units sold 1,800.00 Units
Savings 900.00 Opportunity cost
Opportunity cost (2,150.00)
Increase(decrease) in income (1,250.00)

M company
Sales, 18 units 18.00
Variable Costs (7.20)
Avoidable fixed cost
Opportunity cost 10.80
Expected Income 10.00
Contribution Margin 20.80
Variable costs 16.00
Expected sales 36.80
Divide: units 40.00
Selling price 0.920

Sales 360,000.00
Variable Costs (180,000.00)
Fixed Costs (60,000.00)
Commission (36,000.00)
Advertising (5,000.00)
Net income 79,000.00
 15.00
(3.00)
perataing expenses (1.25)
unit Forgone 10.75
200.00
2,150.00