Lusk corporation produces and sells 14,000 units of product x each month. the selling price of product x is $22 per unit, and variable expenses are $16 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $73,000 of the $103,000 in fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the company’s overall net operating income would: decrease by $49,000 per month increase by $49,000 per month decrease by $54,000 per month increase by $19,000 per month

Hank itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. the following are required for production of a 70-gallon batch. 2,700 ounces of grape concentrate at $0.04 per ounce 77 pounds of granulated sugar at $0.43 per pound 133 lemons at $0.79 each 350 yeast tablets at $0.24 each 350 nutrient tablets at $0.14 each 2,500 ounces of water at $0.001 per ounce hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used. compute the standard cost of the ingredients for one gallon of wine. (round intermediate calculations and final answer to 2 decimal places, e.g.