Homework Answers
| Due to the elimination of Strongville branch the following effects will be on operating income: | ||
| Contrubution margin foregone | $15,500 | |
| Fixed costs avoided | $16,500 | |
| Increase in Net operating income | $1,000 | |
| So Option B is answer | ||
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Next Page Page 24 Question 24 (1 point) The most recent income statement for the Strongsville...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year fo...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 395,000 105,000 76,000 $29,000 Hiking $360,000 275,000 85,000 38,000 $47.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $65,000 OB. Increase $36,000 OC. Increase $5,000 OD. Decrease...
How would I Solve this? QuestIon Freip Contribution margin income statement data for the most recent...
How would I Solve this?
QuestIon Freip Contribution margin income statement data for the most recent year follow: Cat Food Total Dog Food $85,000 $385.000 $205.000 $180,000 $102.000 $78,000 $300,000 Sales revenue Variable expenses $165,000 $40,000 Contribution margin Fixed вxpenses $135,000 $45,000 $52,000 $7,000) S50,000 Operating income (loss) s85,000 Assuming the Dog food line is discontinued, and all fixed costs will go away, how will operating income affected? O A. Increase S45,000 O B. Increase S7,000 O C. Decrease S7.000...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 297,000 171,000 126,000 55,100 $ 70,900 Per Unit $ 33.00 - 19.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 299,200 176,000 123,200 54,500 $ 68,700 Per Unit $ 34.00 20.00 $ 14.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume...
Greenview Corp. (see PB7-1) is considering the possibility of outsourcing the production of the upholstered chair...
Greenview Corp. (see PB7-1) is considering the possibility of outsourcing the production of the upholstered chair pads included with some of its wooden chairs. The company has received a bid from a company in China to produce 1,000 units per year for $9 each. Greenview has the following information about its own production of the chair pads: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Greenview has determined that all variable costs could be...
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported...
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases? If the variable manufacturing overhead exceeds the fixed manufacturing overhead. If production exceeds sales for that period. None of the options provided are correct. If production equals sales for that period. If sales exceed production for that period. w wwwwwwwwwwwwwwwwwwww wwwwwww Question 22 (1 point) The term "gross margin" for a...
Problem 12-5 Total fixed expenses 019.279 Income (loss) from operations 1-46,000 -19,275 Your answer is correct....
Problem 12-5 Total fixed expenses 019.279 Income (loss) from operations 1-46,000 -19,275 Your answer is correct. What course of action do you recommend for each division? Division 1 Division 11 Continued Eliminated Your answer is partially correct. Try again. Prepare a columnar condensed income statement for Sarasota Company, assuming Division Illis eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. then enter the amount using either a negative sign preceding the number -45 or parentheses g....
Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement...
Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Not yet answered Marked out of 2.00 P Flag question Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Total Batting Helmets Football Helmets $1,050,000 $700,000 $350,000 (430,000) (150,000) (280,000 $620,000 $550,000 $70,000 (180.000) 190.000 190.000 $440,000 $460,000 $120,000 If $50,000 of fixed costs will be eliminated by dropping the football helmets line,...
I have Two Problems which are both solved below. My question is what makes the approach...
I have Two Problems which are both solved below. My
question is what makes the approach of solving in each one not the
same. Why does one calculation include avoidable traceable cost
while the other doesn't?
2nd Problem:
(2400000)= segment margin lost
1800000=savings in traceable fix cost due to discontinuation of
beta
765000=Additional contribution margin
*West Region has Traceable costs that should be
avoidable according to segment statement
so again why for the Diego company problem, 250000 in
avoidable Traceable...
The contribution format income statement for Strickland, Inc., for its most recent period is given below:...
The contribution format income statement for Strickland, Inc., for its most recent period is given below: Total Unit Sales $ 990,000 $ 49.50 Variable expenses 594,000 29.70 Contribution margin 396,000 19.80 Fixed expenses 318,000 15.90 Net operating income 78,000 3.90 Income taxes @ 40% 31,200 1.56 Net income $ 46,800 $ 2.34 The company had average operating assets of $503,000 during...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 395,000 105,000 76,000 $29,000 Hiking $360,000 275,000 85,000 38,000 $47.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $65,000 OB. Increase $36,000 OC. Increase $5,000 OD. Decrease...
How would I Solve this?
QuestIon Freip Contribution margin income statement data for the most recent year follow: Cat Food Total Dog Food $85,000 $385.000 $205.000 $180,000 $102.000 $78,000 $300,000 Sales revenue Variable expenses $165,000 $40,000 Contribution margin Fixed вxpenses $135,000 $45,000 $52,000 $7,000) S50,000 Operating income (loss) s85,000 Assuming the Dog food line is discontinued, and all fixed costs will go away, how will operating income affected? O A. Increase S45,000 O B. Increase S7,000 O C. Decrease S7.000...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 297,000 171,000 126,000 55,100 $ 70,900 Per Unit $ 33.00 - 19.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales...
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 299,200 176,000 123,200 54,500 $ 68,700 Per Unit $ 34.00 20.00 $ 14.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume...
Greenview Corp. (see PB7-1) is considering the possibility of outsourcing the production of the upholstered chair pads included with some of its wooden chairs. The company has received a bid from a company in China to produce 1,000 units per year for $9 each. Greenview has the following information about its own production of the chair pads: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Greenview has determined that all variable costs could be...
Question 21 (1 point) Operating income reported under absorption costing will generally exceed operating income reported under variable costing for a given period in which of the following cases? If the variable manufacturing overhead exceeds the fixed manufacturing overhead. If production exceeds sales for that period. None of the options provided are correct. If production equals sales for that period. If sales exceed production for that period. w wwwwwwwwwwwwwwwwwwww wwwwwww Question 22 (1 point) The term "gross margin" for a...
Problem 12-5 Total fixed expenses 019.279 Income (loss) from operations 1-46,000 -19,275 Your answer is correct. What course of action do you recommend for each division? Division 1 Division 11 Continued Eliminated Your answer is partially correct. Try again. Prepare a columnar condensed income statement for Sarasota Company, assuming Division Illis eliminated. Division II's unavoidable fixed costs are allocated equally to the continuing divisions. then enter the amount using either a negative sign preceding the number -45 or parentheses g....
Question 16 Crash Sports, Inc. has two product lines-batting helmets and football helmets. The income statement data for the most recent year is as follows: Not yet answered Marked out of 2.00 P Flag question Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Total Batting Helmets Football Helmets $1,050,000 $700,000 $350,000 (430,000) (150,000) (280,000 $620,000 $550,000 $70,000 (180.000) 190.000 190.000 $440,000 $460,000 $120,000 If $50,000 of fixed costs will be eliminated by dropping the football helmets line,...
I have Two Problems which are both solved below. My
question is what makes the approach of solving in each one not the
same. Why does one calculation include avoidable traceable cost
while the other doesn't?
2nd Problem:
(2400000)= segment margin lost
1800000=savings in traceable fix cost due to discontinuation of
beta
765000=Additional contribution margin
*West Region has Traceable costs that should be
avoidable according to segment statement
so again why for the Diego company problem, 250000 in
avoidable Traceable...
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