A guitar manufacturer is considering eliminating its electric guitar division because its $85,730 expenses are higher than its $78,420 sales. The company reports the following expenses for this division. Avoidable Unavoidable
Q: Do not provide solution in imge format. and also do not provide plagarised content otherwise i…
A: The objective of the question is to determine the minimum transfer price that the Heating Division…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: The door company produces four different doors: A, B, C and D. The sales proceeds and costs of these…
A: When deciding if a company should drop an unprofitable segment, the company should create a segment…
Q: Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone…
A: ANSWER Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone…
Q: Valdez Company is considering eliminating its kitchen division, which reported an operating loss of…
A: The differential analysis is performed to compare the impact of a decision on the net income of the…
Q: Hi Please give me step by step instructions to see how I get the correct answer. The decision to…
A: The total additional cost is the sum of the fixed cost of goods sold and fixed selling expenses. The…
Q: Marin Company makes several products, Including canoes. The company reports a loss from Its canoe…
A: Relevant cost is the cost that is different between different alternatives. This cost is considered…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: In evaluating, whether continue to invest or not in a division, the company should calculate the…
Q: Due to Medicare reimbursement cuts, Loving Home Care is considering shutting down its Certified…
A: Decision making is a process taking a decision of selecting one alternative. We consider only…
Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…
A: The objective of the question is to calculate the net operating incomes earned by Division A,…
Q: The following product line information is for the Swiss Watch Company. The company is considering…
A: Note: Operating income of the company will be decreased by the amount, contribution margin earned by…
Q: Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types…
A: Contribution margin is the difference between the selling price and the variable cost per unit ,…
Q: Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types…
A: The contribution margin is calculated as difference between sales and variable costs.
Q: Problem 1-44 (Algo) Cost Data for Managerial Purposes (LO 1-3) Kendall & Floyd provides landscaping…
A: Relevant CostIn Management accounting the term of Relevant cost is really matter. Relevant cost is…
Q: Required information [The following information applies to the questions displayed below.] Burchard…
A: Lets understand the basics. Contribution margin income statement is a statement which shows how much…
Q: •TCC Furniture Makers makes chairs and tables. With the following data should TCC discontinue the…
A: Step 1: net income with both divisions.Total Contribution Margin = Chair Division Contribution…
Q: Clothing Retail Store's accountant prepared the following income statement for the teenagers'…
A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…
Q: Flint Co. is contemplating a major change in its cost structure. Currently, all of its drafting work…
A: Variable costs are those costs which changes with change in activity level or sales. Contribution…
Q: The Furniture Company currently has three divisions: Maple, Oak, and Cherry. The oak furniture line…
A: The discontinuity of a segment of the business can be evaluated by measuring the various elements…
Q: If the mountain bike division is dropped, all $870,000 of its variable costs are avoidable, and…
A: SOLUTION:- Continue Eliminate Net income increase (decrease) Sales 1,075,000 0…
Q: Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: Required information [The following information applies to the questions displayed below.] Henna…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: Carns Company is considering eliminating its Small Tools Division, which reported a loss for the…
A: Avoidable fixed costs, additionally referred to as fixed costs, are a type of fixed cost that a…
Q: Ovation Company has a single product called a Bit. The company normally produces and sells 28,800…
A: . Incremental Net Operating Income:a. Calculation:Increased Sales: 28,800 units * 125% = 36,000…
Q: ecision to Discontinue a Product On the basis of the following data, the general manager of…
A: The discontinuity of an activity is determined with the effect on profitability if activity is…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: The Company has suffered loss in canoe segment as given. The Variable cost are avoidable and fixed…
Q: Instructions a. Prepare a responsibility report for the patio furniture division for the year. a.…
A: A budget report is a report that states all the revenue and expenses to be incurred by the…
Q: A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All…
A: Unavoidable fixed costs = $49,000 - $39,000 Unavoidable fixed costs = $10,000
Q: Ovation Company has a single product called a Bit. The company normally produces and sells 28,800…
A: To calculate the incremental net operating income, we need to determine the increase in contribution…
Q: None
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…
Q: Manning Company produces a product that has a variable cost of $61 per unit and a sales price of $97…
A: Net Income:Net Income can be calculated by deducting the variable costs and fixed expenses from the…
Q: Dropping or Retaining a Segment The Regal Cycle Company manufactures three types of bicycles—a dirt…
A: 1)
Q: I need full details solution.
A: The correct answer from the multiple-choice options is:$730,900 decreaseExplanation:To determine the…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: Product line analysis is required when there is more than one product in a company. Segmented income…
Q: Required information [The following information app Armstrong Corporation manuf become obsolete due…
A: The question is based on the concept of Financial Accounting.
Q: A guitar manufacturer is considering eliminating its electric guitar division because its $76,000…
A: Introduction: Revenue is calculated by multiplying this same average sales price even by the number…
Q: Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small.…
A: Contribution margin is the amount obtained by deducting the variable costs from the amount of sales.…
Q: Marin Company makes several products, including canoes. The company reports a loss from its canoe…
A: SEGMENT MARGIN Segment margin is the amount of profit or loss produced by one component of a…
Q: xpense proo unting ealed that $203,500 of the fixed manufacturing expenses and $118,500 of the fixed…
A: To decide whether a product must be dropped or not, the relevant cost and revenue must be compared.…
Q: Gion Company is considering eliminating its Windows division, which reported a loss for the prior…
A: Impact on income due to elimination of division :— It is calculated by deducting income (Loss)…
Q: he management of Wengel Corporation is considering dropping product B90D. Data from the company's…
A: Special order means one-time order that is received from not a regular customer. Special order…
Q: The accounting team at Novak is considering its options for reporting performance at the end of this…
A: Using variable costing, the variable manufacturing Costs are included in the product cost. Using…
Q: Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Inc., has…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Asbury Coffee Enterprises (ACE) manufactures two models of coffee grinders: Personal and Commercial.…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Step by step
Solved in 3 steps
- Please do not give solution in image formatManagement and accounting Spencer Company is considering closing one of its product lines. Current data on the product line is as follows:DescriptionSales revenue $20,000Variable costs$17,000Direct avoidable fxed costs $7,000Indirect allocated fxed costs $5,000Net Income Loss on the product line ($9,000) *The direct avoidable fxed costs will be eliminated if the product line is closed. **The indirect allocated fxed costs will remain the same whether the product line is continued or closed.In addition, if Spencer closes the product line, Spencer can sublease its production facility to another company and earn subleaserevenue of $2,700 per year. Assume that Spencer decides to discontinue this product line. By how much will overall company net income change? Company net income will INCREASE by $9000Company net income will DECREASE by $9000Company net income will DECREASE by $6700Company net income will INCREASE by $6700Please don't provide answer in image format thank you
- Carolina Enterprise operates three product segments: sinks, bathtubs, and toilet bowls. Below are the figures showing how each product segment performed in 2022. If Carolina drops any segment, it can avoid 40% of the fixed costs allocated to the dropped segment. In 2023, should the sink segment be dropped in order to improve Carolina's financial performance? Sales Variable costs Contribution margin Fixed costs Net operating income Sinks P450,000 (220,000) 230,000 (250,000) P(20,000) Bathtubs P520,000 (315,000) 205,000 (180,000) P25,000 Toilet Bowls P480,000 (280,000) 200,000 (140,000) P60,000 No, because dropping the sink segment will cause Carolina's total net operating income to decrease by P150,000. Yes, because dropping the sink segment will cause Carolina's total net operating income to increase by P150,000. Yes, because dropping the sink segment will cause Carolina's total net operating income to increase by P130,000. No, because dropping the sink segment will cause Carolina's…Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $296,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $324 $286 $158 Unit variable cost 255 234 139 Unit contribution margin $ 69 $ 52 $ 19 Autoclave hours per unit 6 4 2 Total process hours per unit 18 8 6 Budgeted units of production 4,700 4,700 4,700 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units…be discontinued. The special equipment used to produce the trampolines has A common fixed cost that is allocated on the basis of sales pesos. supervisors assigned to the model would be discharged.. Management is concerned about the continued losses shown by the round trampolines and wants a recommendation as to whether or not the line should no resale value. If the round trampoline model is dropped, the two line Problem 2, page 313-Crystal Sports Equipment (Eliminate or Retain Product Line) Requirement: Compute the increase/decrease in net operating income if the production and sale of the round trampolines is continued. Problem 2 (Eliminate or Retain a Product Line) Crystal Sports Equipment manufactures round, rectangular, and octagonal trampolines. Data on sales and expenses for the past month follow: Round P140,000 60,000 80,000 Trampoline Rectangular Octagonal P500,000 200,000 300,000 Total Sales Less variable expenses. Contribution margin.. Less fixed expenses: P360,000 P1,000,000…
- Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $177,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $353 $99 $282 Unit variable cost 278 81 248 Unit contribution margin $ 75 $ 18 $ 34 Autoclave hours per unit 6 2 4 Total process hours per unit 18 6 8 Budgeted units of production 3,100 3,100 3,100 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units…H1. Account