Omar industries manufactures two products: regular and super. the results of operations for 20x1 follow.
regular super
total units 10,000 4,700 14,700
sales revenue $ 260,000 $ 987,000 $ 1,247,000
less:
cost of goods sold 200,000 658,000 858,000
gross margin $ 60,000 $ 329,000 $ 389,000
less:
selling expenses 60,000 189,000 249,000
operating income (loss) $ 0 $ 140,000 $ 140,000
fixed manufacturing costs included in cost of goods sold amount to $3 per unit for regular and $30 per unit for super.
variable selling expenses are $4 per unit for regular and $30 per unit for super; remaining selling amounts are fixed.
required:
1. omar industries wants to drop the regular product line. if the line is dropped, company-wide fixed manufacturing costs would fall by 10% because there is no alternative use of the facilities. what would be the impact on operating income if regular is discontinued?

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.