
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the...
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $4,000. The division sales for the year were $1,046,000 and the variable costs were $861,000. The fixed costs of the division were $189.000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $56,700 decrease $128,300 decrease $52,700...
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $5,000. The division sales for the year were $1,059,000 and the variable costs were $862,000. The fixed costs of the division were $202,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $60,600 decrease $136,400 decrease $55,600...
5.) Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $6,000. The division sales for the year were $1,044,000 and the variable costs were $863,000. The fixed costs of the division were $187,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $56,100 decrease $124,900 decrease...
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,000. The division sales for the year were $941,000 and the variable costs were $465,000. The fixed costs of the division were $517,000. If the backpack division is dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on Granfield's operating income for eliminating this business segment would be: Multiple Choice O $269,200 increase O $476,000 decrease...
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $105,000. Division sales for the year were $1,110,000 and its variable costs were $975,000. The foed costs of the division were $220,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be: - Ο $7.200 decrease Ο $8,000 increase Ο $143,000 decrease...
Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $53,000 for the past year, Kitchen division sales for the year were $1,040,000, and its variable costs were $775,000. The fixed costs of the division were $318,000. If the kitchen division is dropped, 60% of the foxed costs allocated to it could be eliminated. The impact on Valdez's operating income from eliminating this business segment would be . Multiple Choice Ο $74,200 decrease Ο $265,000 increase...
Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $150,000 of the fixed costs allocated to that division could be eliminated. The impact on Valber’s operating income from eliminating the phone division would be: Desktops Laptops Tablets Phones Sales $ 356,000 $ 871,500 $ 694,000 $ 975,000 Variable costs 201,000 635,000 528,000 795,000 Contribution margin 155,000 236,500 166,000 180,000 Fixed costs 71,200 174,300 138,800 195,000 Net income...
Sammy Company is considering eliminating its commercial division. The company allocates foed costs based on division sales. If the commercial division is dropped, $100,000 of the fixed costs allocated to it could be eliminated. The impact on Sammy's operating income from eliminating the commercial division would be Sales Variable costs Contribution margin Fixed costs Net income (loss) Garden $678,000 372,900 305,100 247,200 57,900 Farm $920,000 414,000 506,000 335,500 170,500 Commercial $ 692,000 649,800 42,200 252,400 (210,200) Ο Ο $10,200 decrease...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Bikes $ 267,000 120,000 Total $ 923,000 464,000 Mountain Bikes $ 405,000 194,000 Racing Bikes $ 251,000 150,000 Sales Variable manufacturing and selling expenses Contribution margin 459,000 147,000 211,000 101,000 Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 69,900 44,200 116,200 184,600 8,700...
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow Racing Bikes Dirt Mountain Total $923,000 $ 267,000 464,000 Bikes Bikes $ 405,000 $ 251,000 194,000 Sales Variable manufacturing and selling expenses 120,000 150,000 Contribution margin 147,000 101,000 211,000 459,000 Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses 40,900 7,500 39,000 81,000 69,900 44,200...