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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.)

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter19: Variable Costing (varcost)
Section: Chapter Questions
Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...
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Consider the additional information presented as follows, which is hypothetical. All dollar amounts are in thousands, unit amounts are not. Assume that P&G decides to eliminate one shampoo product-line, Luster, for one of its segments that currently produces three products. As a result, the following are expected to occur.

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.)
Transcribed Image Text: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.)
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