No AI A company has three product lines, one of which reflectsthe following results:SalesVariable expenses400,000250,000Contribution margin 150,000Fixed expensesNet loss240,000(90,000)If this product line is eliminated, 65% of the fixedexpenses can be eliminated, and the other 35% will beallocated to other product lines.If management decides to eliminate this product line,the company's net income will:

Step 1: Identify the changes in revenues and expensesSales revenue lost: $400,000 (since the product…

Answered: A company has three product lines, one…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 24P

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The company's net income will?
A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss O decrease by $4000. O increase by $4000 decrease by $82000 $181000 99000 O increase by $48000 82000 130000 If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will $ (48000)
A company has three product lines, one of which has the following results: Sales $214000 Variable expenses 127000 Contribution margin 87000 Fixed expenses 130000 Net loss $ (43000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company’s net income will
A company has five product lines, one of which has Fixed expenses of $173,657 and a Net loss of $40,203. If this product line is eliminated, 48% of the fixed expenses can be eliminated and the remainder will be allocated to other product lines. If management decides to eliminate this product line, the amount the company's net income will increase or decrease(-) is? Round to the nearest dollar and put a negative sign - before a decrease. Do not type the dollar sign.
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Jake Company has three product lines, one of which has the following results: Sales P215,000 Variable expenses 125,000 Contribution margin 90,000 Fixed expenses 130,000 Net loss P (40,000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, how much will the company's net income or loss be?
Cullumber Toys' management is considering eliminating product A, which has been showing a loss for several years. The company's annual income statement, is as follows: Sales Variable expenses Contribution margin Advertising expense Depreciation expense Corporate expenses Total fixed expenses Operating income (a) enses margin Direct fixed expenses rgin C $2,247.000 $1,404,000 $1,809,300 $5,460,300 1,632,000 600,400 1,095,200 3,327,600 $615,000 $803,600 $714,100 $2,132,700 $517.000 $430,000 $520,000 $1,467,000 15,900 46,500 93,900 105,000 280,500 $626,800 $645,600 $1,794,000 $(11,800) $68,500 $338,700 A Advertising expense - Specific to each product. Depreciation expense - Specific to each product; no other use available, no resale value. Corporate expenses - Allocated based on number of employees. Restate the income statement in segment margin format. Common fixed expenses 1: ofit B $ 10,000 $ 81,600 $521,600 $282,000 20,600 A Total $ B
View Policies Current Attempt in Progress A company has three product lines, one of which reflects the following results: $244000 Sales Variable expenses 141000 Contribution margin 103000 Fixed expenses 130000 $ (27000) Net loss If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will O decrease by $25000. decrease by $103000. increase by $27000. increase by $25000.
The following information relates to next year’s projected operating results of the ARO Division of ABE Corporation: Contribution Margin P1,500,000 Fixed Expenses 1,700,000 Net operating loss P(200,000) If ARO Division is dropped, P1,000,000 of the above fixed costs would not be eliminated. What will be the effect (increase/decrease) on ABE’s profit next year if ARO Division is dropped instead of being kept?
Current Attempt in Progress A company has three product lines, one of which has the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss Save for Later esc If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will ! O increase by $35000. O increase by $15000. O decrease by $90000. O decrease by $15000. 1 $221000 Q 131000 A 90000 125000 $(35000) 2 W S #3 с E D $ 4 R % 5 G Search or type URL FL Attempts: 0 of 1 used MacBook Pro T 6 G Y & 7 H Submit Answer X 8 U 9
Coronado Machines has four product lines, one of which reflects the following results: Sales $210000 Variable costs 111000 Contribution margin 99000 Fixed costs 111000 Net loss $(12000) If this product line is eliminated, 40% of the fixed costs can be eliminated and the other 60% will be allocated to other product lines. If management decides to eliminate this product line, what will happen to the company's net income? It will increase by $12000. It will increase by $44400. It will decrease by $42600. It will decrease by $54600.

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