Question 9.11When Rosana, CFO of Hydie Inc., first evaluated the segmented income statement below, he flew into his usual rage:"When are we having losses in our product lines, I would rather eliminate them."Product LinesTotalUVS75,000$47,000$28,000Sales$250,000$100,000$75,000$35.000$40,000$37,000Variable expenses$119,000$37,500Contribution margin$130,500$62,500Traceable fixed expenses*$98,000$31,000$30,000$32.900$400$4,400S(6,400)Common expenses, allocated$18,000$10,500Operating income (loss)$13.500S17.500)*These traceable expenses could be eliminated if the product lines to which they are traced were discontinued.Required:Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your answer. Show allthe necessary calculations.

Management accounting is widely used by the management, government, and individuals to make various…

1When Rosana, CFO of Hydie Inc., first evaluated the segmented income statement below, he flew into his usual rage: "When are we having losses in our product lines, I would rather eliminate them." Product Lines Total U V $100,000 $37.500 Sales $250,000 $75,000 $75,000 $35.000 $40,000 $37,000 $47,000 $28,000 Variable expenses $119.000 Contribution margin $130,500 S62,500 Traceable fixed expenses* $98,000 $31,000 $30,000 Common expenses, allocated $32,900 $18.000 $10,500 $4.400 Operating income (loss) -$400 $13,500 SI7.500) $16,400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued. Required: Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your answer. Show all the necessary calculations.

1When Rosana, CFO of Hydie Inc., first evaluated the segmented income statement below, he flew into his usual rage: "When are we having losses in our product lines, I would rather eliminate them." Product Lines Total U V $100,000 $37.500 Sales $250,000 $75,000 $75,000 $35.000 $40,000 $37,000 $47,000 $28,000 Variable expenses $119.000 Contribution margin $130,500 S62,500 Traceable fixed expenses* $98,000 $31,000 $30,000 Common expenses, allocated $32,900 $18.000 $10,500 $4.400 Operating income (loss) -$400 $13,500 SI7.500) $16,400) *These traceable expenses could be eliminated if the product lines to which they are traced were discontinued. Required: Recommend which segments, if any, should be eliminated. Prepare a report in good form to support your answer. Show all the necessary calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Through November, Cameron has received gross income of $130,500. For December, Cameron is considering whether to accept one more work engagement for the year. Engagement 1 will generate $9,730 of revenue at a cost to Cameron of $4,050, which is deductible for AGI. In contrast, engagement 2 will generate $7,100 of qualified business income (QBI), which is eligible for the 20 percent QBI deduction. Cameron files as a single taxpayer, and he did not contribute to charity during the year. Calculate Cameron's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions. Description (1) Gross income before new work engagement (2) Income from engagement (3) Additional for AGI deduction (4) Adjusted gross income (6) Deduction for QBI Taxable income Engagement 1 Engagement 2
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A company generated $250,000 of revenue by selling 500 computers. Total variable expenses associated with these 500 computers is $150,000. Total fixed expenses associated with these 500 computers is $80,000 13. What is the total contribution margin needed for the company to break even? A. $80,000 B. $150,000 C. $250,000 D. $500,000 14. How many computers must be sold for the company to break even? Show Transcribed Text D. OUU 15. Assuming everything remains the same. However, the company only happened to sell 399 computers. What is the net operating income? A. ($200) B. 0 C. $200 D. $500 16. If the company wants to generate $600 of net operating income, how many computers must be sold? A. 399 B. 403 C. 406 D. 408
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