rate positively ..
| Product A contribution margin = | 40% | ||||||
| (95000-57000)/95000 | |||||||
| i | Incremental contribution from increased sales of A = | 10880 | |||||
| 27200*40% | |||||||
| ii | Add: Avoidable fixed cost of product B = | 34410 | |||||
| iii | Less: | Additional fixed cost = | -4600 | ||||
| iv | Less: | Loss on Product B's contribution = | -45600 | ||||
| v=i+ii+iii+iv | Net loss = | -4910 | |||||
| ans = option E = | -4910 | ||||||
Mulle statement is for X Company's two products, A and B: Product Product $95,000 57,000 $95,000...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $92,000 $89,000 Total variable costs 54,280 49,840 Total contribution margin $37,720 $39,160 Total fixed costs Avoidable 16,054 32,082 Unavoidable 13,676 25,208 Profit $7,990 $-18,130 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $28,200, with $4,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $90,000 $91,000 Total variable costs 47,700 52,780 Total contribution margin $42,300 $38,220 Total fixed costs Avoidable 34,382 17,663 Unavoidable 24,898 15,047 Profit $-16,980 $5,510 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $26,800, with $3,200 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $88,000 $90,000 Total variable costs 52,800 50,400 Total contribution margin $35,200 $39,600 Total fixed costs Avoidable 15,370 32,060 Unavoidable 11,130 27,310 Profit $8,700 $-19,770 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $27,700, with $3,400 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $92,000 $85,000 Total variable costs 52,440 44,200 Total contribution margin $39,560 $40,800 Total fixed costs Avoidable 15,855 29,193 Unavoidable 15,855 26,947 Profit $7,850 $-15,340 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,600, with $4,200 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product Product $90,000 53,100 $36,900 $86,000 50,740 $35,260 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 33,762 22,508 $-19,370 13,276 12,254 $9,730 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $29,700, with $4,200 of additional fixed costs, what will be the effect on firm...
The following income statement is for X Company's two products, A and B: Product A $68,000 52.100 $35,200 Product B $80,000 50.162 $37,840 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 17,464 12.046 $5,090 29,631 28,469 $-20,260 11 X Company drops Product because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,900, with $5,000 of additional red costs, what wil be the effect on...
The following income statement is for X Company's two products, A and B: Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Product A $92,000 54,280 $37,720 Product B $88,000 52,800 $35,200 Unavoidable 16,354 15,096 $6,270 30,931 27,429 $-23,160 Profit If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,400, with $3,400 of additional fixed costs, what will be the effect...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B $183,490 100,832 $82,658 $89,560 51,049 $38,511 $93,930 49,783 $44,147 Sales Variable Costs Contribution margin Fixed costs: Avoidable 61,820 31,330 $-10,492 23,610 6,080 $8,821 38,210 Unavoidable 25,250 $-19,313 ecause Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it roduct B, X Company's new profits will be...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $180,560 $87,730 $92,830 Variable Costs 98,584 44,742 53,841 Contribution margin $81,976 $42,988 $38,989 Fixed costs: Avoidable 63,950 41,480 22,470 Unavoidable 35,550 29,920 5,630 Profit $-17,524 $-28,412 $10,889 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be