Sophie Company is considering closing one of its product lines. Current data on the product line are as follows. Sales revenue $25,000 Variable costs 19,000 Direct avoidable fixed costs* 7,000 Indirect allocated fixed costs** 5,000 Net Income (Loss) on the product line ($6,000) *The direct avoidable fixed costs will be eliminated if the product line is closed. **The indirect allocated fixed costs will remain the same whether the product line is continued or closed. IN ADDITION, if Sophie closes the product line, Sophie can sublease its production facility to another company and earn sublease revenue of $1,500 per year. Assume that Sophie decides to discontinue this product line. By how much will overall company net income change

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?