Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contribution margin of $8. If product X is discontinued, $45,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:

Effect on income= $115,000 decrease

Explanation:

Giving the following information:

Fixed costs= $45,000

Number of units= 20,000

Unitary contribution margin= $8

To calculate the effect on income, we need to use the following formula:

Effect on income=  decrease in fixed costs - decrease in contribution margin

Effect on income= 45,000 - 20,000*8

Effect on income= $115,000 decrease

The answer to a) is 13 dozens; answer to b) is 11 dozens, and answer to c) is 15 dozens

Explanation:

Let eggs be x and Milk be y

Eleanor =15x or 5y

Sister=2x or 2y

Eleanor 15x=5y; i.e. y=3x

Sister 2x=2y; i.e. x=y

a)Each collected 1 gallon of milk

Meaning Eleanor had 4 more gallons to collect and each gallon is equivalent to 3 dozens

So she gathered 4*3=12 dozens of eggs

The sister gathered 1 dozen of eggs  

Totals =12+1=13 dozens.

b)If they specialize:

Eleanor to collect milk 2 gallons

Time to collect the remaining 3 gallons be spend for eggs i.e. 3*3 = 9 dozens

Sister spend time in collecting eggs i.e. 2 dozens  

Total =2+9=11dozens

c)If the sister specializes in collecting milk

She will collect milk only while Eleanor will gather eggs alone i.e. 15 dozens

Hence, Eleanor should specialize in eggs.

The family will have 15 dozens at the end of the week.