Homework Answers
Answer:
Option B : $254,000 decrease
Explanation:
Given,
Sales = $630,000
Fixed costs = $375,500
Change in net income = Sales - Variable Cost
= $630,000 - $376,000
= $254,000 decrease.
If the segment is eliminated, and fixed costs are allocated to profitable segments, net income will be decreased by $254,000
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The following information is available for Swifty Corporation: Sales $560000 Total fixed expenses $150000 Cost of...
The following information is available for Swifty
Corporation:
Sales
$560000
Total fixed expenses
$150000
Cost of goods sold
360000
Total variable expenses
320000
A CVP income statement would report
gross profit of $200000.
contribution margin of $240000.
contribution margin of $410000.
gross profit of $240000.
Question 16
It costs Vaughn Company $26 per unit ($18 variable and $8 fixed)
to produce its product, which normally sells for $38 per unit. A
foreign wholesaler offers to purchase 4800 units at $21...
of the following is incorrect about variance reports? facilitate management by exception" they should only be...
of the following is incorrect about variance reports? facilitate management by exception" they should only be sent to the top level of management They should be prepared as soon as possible They may vary in form, content, and frequency among companies. using variance reports to evaluate cost control management normally looks into: All variances Favorable variances only Unfavorable variances only Both favorable and unfavorable variances that exceed a predetermined quantity measure such as a percentage or dollar amount. 25. Which...
Question 8 It costs Sheridan Fields $13 of variable costs and $6 of allocated fixed costs...
Question 8 It costs Sheridan Fields $13 of variable costs and $6 of allocated fixed costs to produce an indust Sheridan has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? O decrease $3593 O increase $3593 O increase $52360 increase $12320 LINK TO TEXT Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER
1) 2) 3) 4) 5) When Isaiah Company has fixed costs of $103,530 and the contribution...
1)
2)
3)
4)
5)
When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000,...
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase
Macho Sports Company sells soccer and baseball merchandise. The company is trying to decide whether or...
Macho Sports Company sells soccer and baseball merchandise. The company is trying to decide whether or not to continue the baseball merchandise given the decline in the demand and current loss of this product line. The following information is available for the segments: Baseball Soccer Sales $120,000 $420,000 Variable costs 72.000 220.000 Contribution margin 48,000 200,000 Direct fixed costs 32,000 70,000 Allocated common fixed costs 20.000 70.000 Net income ($ 4,000) $ 60,000 If the baseball segment is dropped, soccer...
It costs Swifty Corporation $28 of variable costs and $10.40 of allocated fixed costs to produce...
It costs Swifty Corporation $28 of variable costs and $10.40 of allocated fixed costs to produce an industrial trash can that sells for $52. A buyer in Mexico offers to purchase 3000 units at $31 each. Swifty Corporation has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $93000 Increase $9000 Decrease $22200 Increase $22200
It costs Crane Company $28 of variable costs and $10.00 of allocated fixed costs to produce...
It costs Crane Company $28 of variable costs and $10.00 of allocated fixed costs to produce an industrial trash can that sells for $50. A buyer in Mexico offers to purchase 3000 units at $30 each. Crane Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $6000 Decrease $24000 Increase $24000 Increase $90000
valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales...
valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales in units $540,000 378,000 120,000 40,000 units What is the break-even point in sales dollars? O a. $150,000 b. $112,500 c. $498,000 Od. $171,429 e. $400,000
The following information is available for Swifty
Corporation:
Sales
$560000
Total fixed expenses
$150000
Cost of goods sold
360000
Total variable expenses
320000
A CVP income statement would report
gross profit of $200000.
contribution margin of $240000.
contribution margin of $410000.
gross profit of $240000.
Question 16
It costs Vaughn Company $26 per unit ($18 variable and $8 fixed)
to produce its product, which normally sells for $38 per unit. A
foreign wholesaler offers to purchase 4800 units at $21...
of the following is incorrect about variance reports? facilitate management by exception" they should only be sent to the top level of management They should be prepared as soon as possible They may vary in form, content, and frequency among companies. using variance reports to evaluate cost control management normally looks into: All variances Favorable variances only Unfavorable variances only Both favorable and unfavorable variances that exceed a predetermined quantity measure such as a percentage or dollar amount. 25. Which...
Question 8 It costs Sheridan Fields $13 of variable costs and $6 of allocated fixed costs to produce an indust Sheridan has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? O decrease $3593 O increase $3593 O increase $52360 increase $12320 LINK TO TEXT Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER
1)
2)
3)
4)
5)
When Isaiah Company has fixed costs of $103,530 and the contribution margin is $21, the break-even point is Oa. 5,700 units Ob. 12,420 units Oc.9,860 units Od. 4,930 units Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000? Oa. $8,000 decrease Ob. $30,000 decrease Oc. $30,000 increase Od. $8,000 increase Zipee Inc....
Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase
Macho Sports Company sells soccer and baseball merchandise. The company is trying to decide whether or not to continue the baseball merchandise given the decline in the demand and current loss of this product line. The following information is available for the segments: Baseball Soccer Sales $120,000 $420,000 Variable costs 72.000 220.000 Contribution margin 48,000 200,000 Direct fixed costs 32,000 70,000 Allocated common fixed costs 20.000 70.000 Net income ($ 4,000) $ 60,000 If the baseball segment is dropped, soccer...
It costs Swifty Corporation $28 of variable costs and $10.40 of allocated fixed costs to produce an industrial trash can that sells for $52. A buyer in Mexico offers to purchase 3000 units at $31 each. Swifty Corporation has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Increase $93000 Increase $9000 Decrease $22200 Increase $22200
valude A company provided the following data: Sales Variable costs Fixed costs Expected production and sales in units $540,000 378,000 120,000 40,000 units What is the break-even point in sales dollars? O a. $150,000 b. $112,500 c. $498,000 Od. $171,429 e. $400,000
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