2. Company Division B recorded sales of $360,000, variable cost of goods sold of $315,000, variable selling expenses of $13,000, and fixed costs of $61,000, creating a loss from operations of $38,000. Determine the differential income or loss from the sales of Division B. Should this division be discontinued?3. An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.65. Provide a differential analysis for further processing.7. Jay Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows:Variable costs: Direct materials$ 4.70 Direct labor2.50 Factory overhead1.90 Selling and administrative expenses 2.60 Total$ 11.70Fixed costs: Factory overhead$80,000 Selling and administrative expenses14,000Jay desires a profit equal to a 14% rate of return on invested assets of $640,000.(a)Determine the amount of desired profit from the production and sale of Product E.(b)Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E.(c)Determine the markup percentage for Product E.(d)Determine the selling price of Product E.

2. Company Division B recorded sales of $360,000, variable cost of goods sold of $315,000, variable selling expenses of $13,000, and fixed costs of $61,000, creating a loss from operations of $38,000. Determine the differential income or loss from the sales of Division B. Should this division be discontinued?3. An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.65. Provide a differential analysis for further processing.7. Jay Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows:Variable costs: Direct materials$ 4.70 Direct labor2.50 Factory overhead1.90 Selling and administrative expenses 2.60 Total$ 11.70Fixed costs: Factory overhead$80,000 Selling and administrative expenses14,000Jay desires a profit equal to a 14% rate of return on invested assets of $640,000.(a)Determine the amount of desired profit from the production and sale of Product E.(b)Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E.(c)Determine the markup percentage for Product E.(d)Determine the selling price of Product E.

2. Company Division B recorded sales of $360,000, variable cost of goods sold of $315,000, variable selling expenses of $13,000, and fixed costs of $61,000, creating a loss from operations of $38,000. Determine the differential income or loss from the sales of Division B. Should this division be discontinued?3. An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $6.65. Provide a differential analysis for further processing.7. Jay Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows:Variable costs: Direct materials$ 4.70 Direct labor2.50 Factory overhead1.90 Selling and administrative expenses 2.60 Total$ 11.70Fixed costs: Factory overhead$80,000 Selling and administrative expenses14,000Jay desires a profit equal to a 14% rate of return on invested assets of $640,000.(a)Determine the amount of desired profit from the production and sale of Product E.(b)Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E.(c)Determine the markup percentage for Product E.(d)Determine the selling price of Product E.