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Selecting a business segment

Please see the attached file.

Sales faux Traditional
Less cost of goods sold $800,000 $200,000
Unit level production cost 500,000 120,000
Depreciation, production equipment 120,000 30,000
Gross margin 180,000 50,000
Less operating expenses
Unit level selling and admin. costs 30,000 25,000
Corporate level facility expenses (fixed) 26,000 26,000
Net income (loss) 124,000 (1,000)

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Excel file contains solutions of 2 problems related with relevant costing.

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