Hayworth corporation has just segmented last year's income statement into its ten product lines. the chief executive officer (ceo) is curious as to what effect dropping one of the product lines at the beginning of last year would have had on overall company profit. what is the best number for the ceo to look at to determine the effect of this elimination on the net operating income of the company as a whole?
a) the product line's sales dollars.
b) the product line's contribution margin.
c) the product line's segment margin.
d) the product line's segment margin minus an allocated portion of common fixed expenses.

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005