A price-off pack is an example of a consumer franchise building sales promotions

CM Company manufactures a component used in the production of one of its main products

The following cost information is available: Direct materials $420 Direct labor (variable) 110 Variable manufacturing overhead 80 Fixed manufacturing overhead 30 A supplier has offered to sell the component to CM for $650 per unit. If CM buys the component from the supplier, the released facilities can be used to manufacture a product that would generate a contribution margin of $10,000 annually. Assuming that CM needs 4,000 components annually and that the fixed manufacturing overhead is unavoidable, what would be the impact on operating income if CM outsources? A) Operating income would decrease by $150,000. B) Operating income would increase by $10,000. C) Operating income would decrease by $10,000. D) Operating income would increase by $160,000.

A product line is a group of products that are closely related because of which of the following?

a. The products are all sold under the same brand name. b. The products all function in a similar manner and provide similar benefits. c. The same company developed the idea for each product. d. The products share the same product managers.