H1. Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2022, the companyincurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. The costsper unit to manufacture a gallon of the chemical are presented below:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadTotal manufacturing costsNet income per unitIncremental net incomeThe company is considering manufacturing the paint itself. If the company processes the chemical further and manufactures the paintitself, the following additional costs per gallon will be incurred: Direct materials $1.70, Direct labor $.60, Variable manufacturingoverhead $.50. No increase in fixed manufacturing overhead is expected. The company can sell the paint at $15.50 per gallon.Determine the incremental per gallon increase in net income and the total increase in net income if the company manufactures thepaint. (Round net income per unit value to 2 decimal places, e.g. 15.25.)SalesCost of goods soldGross profitOperating expensesNet incomeSales$6.00$Variable costs1.20$Show Transcribed TextCost of goods soldVeronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's sixdivisions. Veronica made the following presentation to Cullumber's board of directors and suggested the Percy Division be eliminated."If the Percy Division is eliminated," she said, "our total profits would increase by $26,200."Operating expensesTotal variable$8.60The OtherFive Divisions.80$1,663,000.60978,600684,400526,000$158,400PercyDivision$100,10076,800In the Percy Division, cost of goods sold is $59,300 variable and $17,500 fixed, and operating expenses are $31,400 variable and$18,100 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued.per unit23,300Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using eithera negative sign preceding the number e.g. -45 or parentheses e.g. (45).)49,500$(26,200 )ContinueTotal$1,763,1001,055,400707,700575,500$132,200EliminateNet IncomeIncrease(Decrease) Total variableContribution marginFixed costsCost of goods soldOperating expensesTotal fixedNet income (loss)Veronica is$tALA

Hi studentSince there are multiple questions, we will answer only first question.Variable costs are…

Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2022, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical. The selling price of the chemical is $12.00 per gallon. The costs per unit to manufacture a gallon of the chemical are presented below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Net income per unit $6.00 Incremental net income 1.20 $ .80 The company is considering manufacturing the paint itself. If the company processes the chemical further and manufactures the paint itself, the following additional costs per gallon will be incurred: Direct materials $1.70, Direct labor $.60, Variable manufacturing overhead $.50. No increase in fixed manufacturing overhead is expected. The company can sell the paint at $15.50 per gallon. .60 Determine the incremental per gallon increase in net income and the total increase in net income if the company manufactures the paint. (Round net income per unit value to 2 decimal places, e.g. 15.25.) $8.60 per unit