A Sales Revenues P100,000 (20,000) 80,000 P150,000 Variable Costs Contribution Margin (50,000) 100,000 (45,000) 55,000 (60,000) (P5,000) Direct Fixed Cost (30,000) 50,000 (40,000) Segment Margin Common Cost Operating Income P10,000
A Sales Revenues P100,000 (20,000) 80,000 P150,000 Variable Costs Contribution Margin (50,000) 100,000 (45,000) 55,000 (60,000) (P5,000) Direct Fixed Cost (30,000) 50,000 (40,000) Segment Margin Common Cost Operating Income P10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
How much would be the net effect on the total segment profit if product B is dropped and discontinued?
Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit?
Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?
Transcribed Image Text:A
В
Sales Revenues
P100,000
P150,000
Variable Costs
Contribution Margin
(20,000)
80,000
(30,000)
(50,000)
100,000
(45,000)
55,000
Direct Fixed Cost
|Segment Margin
50,000
Common Cost
(40,000)
(60,000)
(P5,000)
Operating Income
P10,000
Expert Solution
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 4 steps with 6 images
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education