Annual Costs of Operating Each Product Line Sales in units Sales in dollars Unit-level costs: Cost of production Sales commissions Shipping and handling Miscellaneous Total unit-level costs Product-level costs: Supervisors' salaries Facility-level costs: Rent Utilities Depreciation on equipment Allocated companywide expenses Total facility-level costs Product-Line Earnings Statements (Dollar amounts are in thousands) Total product cost Profit on products Anagen 450,000 $900,000 85,500 11,700 20,250 6,750 124,200 9,600 100,000 112,500 400,000 22,500 635,000 768,800 $131,200 Catagen 450,000 $900,000 85,500 11,700 18,000 4,500 119,700 7,200 100,000 112,500 400,000 22,500 635,000 761,900 $138,100 Luster 225,000 $450,000 46,200 6,000 9,000 2,250 63,450 2,400 50,000 56,250 200,000 11,250 317,500 383,350 $ 66,650 Total 1,125,000 $2,250,000 217,200 29,400 47,250 13,500 307,350 19,200 250,000 281,250 1,000,000 56,250 1,587,500 1,914,050 $ 335,950 Prepare revised product-line earnings statements based on the elimination of Luster. (Hint: It will be necessary to calculate some per-unit data to accomplish this.)

Annual Costs of Operating Each Product Line Sales in units Sales in dollars Unit-level costs: Cost of production Sales commissions Shipping and handling Miscellaneous Total unit-level costs Product-level costs: Supervisors' salaries Facility-level costs: Rent Utilities Depreciation on equipment Allocated companywide expenses Total facility-level costs Product-Line Earnings Statements (Dollar amounts are in thousands) Total product cost Profit on products Anagen 450,000 $900,000 85,500 11,700 20,250 6,750 124,200 9,600 100,000 112,500 400,000 22,500 635,000 768,800 $131,200 Catagen 450,000 $900,000 85,500 11,700 18,000 4,500 119,700 7,200 100,000 112,500 400,000 22,500 635,000 761,900 $138,100 Luster 225,000 $450,000 46,200 6,000 9,000 2,250 63,450 2,400 50,000 56,250 200,000 11,250 317,500 383,350 $ 66,650 Total 1,125,000 $2,250,000 217,200 29,400 47,250 13,500 307,350 19,200 250,000 281,250 1,000,000 56,250 1,587,500 1,914,050 $ 335,950 Prepare revised product-line earnings statements based on the elimination of Luster. (Hint: It will be necessary to calculate some per-unit data to accomplish this.)

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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