A. Should a company allocate its common fixed expenses to business segments when computing the break-even point for those segments? Why? b. When the units produced are greater than the units sold, which method would show the higher net operating income, variable costing or absorption costing? Explain.

Jaynet spends $50,000 per year on painting supplies and storage space. she recently received two job offers from a famous marketing firm – one offer was for $95,000 per year, and the other was for $120,000. however, she turned both jobs down to continue a painting career. if jaynet sells 35 paintings per year at a price of $6,000 each: a. what are her accounting profits? b. what are her economic profits?