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1. Sandy is considering moving from her apartment into a small house with a fenced yard. The house would be quieter, making it easier to study, and the yard would be great for her dog. The house is about the same distance from campus as her apartment. Rent for the apartment is $750 per month. If Sandy moves to the house, she must pay the remaining two months of the lease for the apartment. The rent for the house is $450 per month plus utilities. Sandy estimates the utilities will be $200 per month. The apartment is furnished but the house is not. A used furniture store has offered to finance the purchase of the necessary furniture for $50 per month.

   Which of the following costs is not relevant to Sandys decision to move to the house or stay in the apartment?

   		The cost of renting the house
   		The cost of the furniture
   		The cost for utilities for the house
   		The two months of remaining rent on the apartment

2.

Quiz Company provided the following information related to its two product lines.

	Product 1	Product 2
Units sold	10,000	20,000
Price per unit	$20	$15
Variable cost per unit	10	12
Direct fixed costs	35,000	75,000

Common fixed costs total $45,000. Quiz Company allocated 1/3 of the common fixed costs to Product 1 and 2/3 of the common fixed costs to Product 2. All direct fixed costs will be avoidable if a product line is dropped.

Determine the segment margin for Product 1.

Note: Give your answer using dollar signs and commas but no decimal points (cents). Express negative numbers in parentheses.

Example: $12,345 or $(12,345)

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