A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales Variable costs $ 270,000 152,000 Fixed costs Direct Indirect 36,000 56,000 Operating loss $ (26,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated?
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales Variable costs $ 270,000 152,000 Fixed costs Direct Indirect 36,000 56,000 Operating loss $ (26,000) 1-a. Compare the amounts of total revenues and total avoidable expenses. 1-b. Based on this information, should the division be eliminated?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you please check my work
![variapie costs
152,000
Fixed costs
Direct
36,000
56,000
Indirect
Operating loss
$ (26,000)
1-a. Compare the amounts of total revenues and total avoidable expenses.
1-b. Based on this information, should the division be eliminated?
Complete this question by entering your answers in the tabs below.
Required 1A
Required 1B
Compare the amounts of total revenues and total avoidable expenses.
Revenues
$
270,000
Avoidable expenses
2,240,000
74,400
Revenues are greater than (less than) avoidable expenses by
$
< Required 1A
Required 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd04091bf-ef16-4edf-af68-771d2ae33333%2F06a23d13-a411-4444-8fe5-604a1e8d8f40%2Fb7klvu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:variapie costs
152,000
Fixed costs
Direct
36,000
56,000
Indirect
Operating loss
$ (26,000)
1-a. Compare the amounts of total revenues and total avoidable expenses.
1-b. Based on this information, should the division be eliminated?
Complete this question by entering your answers in the tabs below.
Required 1A
Required 1B
Compare the amounts of total revenues and total avoidable expenses.
Revenues
$
270,000
Avoidable expenses
2,240,000
74,400
Revenues are greater than (less than) avoidable expenses by
$
< Required 1A
Required 1B >
![A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are
avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated?
Sales
$ 270,000
152,000
Variable costs
Fixed costs
Direct
36,000
56,000
Indirect
Operating loss
$ (26,000)
1-a. Compare the amounts of total revenues and total avoidable expenses.
1-b. Based on this information, should the division be eliminated?
Complete this question by entering your answers in the tabs below.
Required 1A
Required 1B
Compare the amounts of total revenues and total avoidable expenses.
Revenues
$
270,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd04091bf-ef16-4edf-af68-771d2ae33333%2F06a23d13-a411-4444-8fe5-604a1e8d8f40%2Fcvdahxn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are
avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated?
Sales
$ 270,000
152,000
Variable costs
Fixed costs
Direct
36,000
56,000
Indirect
Operating loss
$ (26,000)
1-a. Compare the amounts of total revenues and total avoidable expenses.
1-b. Based on this information, should the division be eliminated?
Complete this question by entering your answers in the tabs below.
Required 1A
Required 1B
Compare the amounts of total revenues and total avoidable expenses.
Revenues
$
270,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education