Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,260 2,520 2,520 6,300 Revenue $40,320 $54,180 $32,760 $127,260 Variable departmental costs 27,720 30,240 16,380 74,340 Direct fixed costs 6,300 5,040 3,780 15,120 Allocated fixed costs 7,560 8,820 8,820 25,200 Net income (loss) $(1,260) $10,080 $3,780 $12,600 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A

Baby Dolls Teenage Dolls Plush Dolls Total Units sold 1,260 2,520 2,520 6,300 Revenue $40,320 $54,180 $32,760 $127,260 Variable departmental costs 27,720 30,240 16,380 74,340 Direct fixed costs 6,300 5,040 3,780 15,120 Allocated fixed costs 7,560 8,820 8,820 25,200 Net income (loss) $(1,260) $10,080 $3,780 $12,600 Demand for individual products is not affected by changes in other product lines. Prepare an incremental analysis to determine if the Baby Dolls should be discontinued. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A

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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Vikram Bhai
Number of units produced and sold Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) Basic Advanced Total 20,000 10,000 $ 30,000 $ $ 3,000,000 2,000,000 5,000,000 2,300,000 1,350,000 3,650,000 700,000 650,000 1,350,000 720,000 480,000 1,200,000 $ (20,000) $170,000 $150,000 Direct laborers are paid $20 per hour. Direct materials cost $40 per unit for the Basic model and $60 per unit for the Advanced model. Koontz is considering a change from plantwide overhead allocation to a departmental approach. The overhead costs in the company's Molding Department would be allocated based on machine-hours and the overhead costs in its Assemble and Pack Department would be allocated based on direct labor-hours. To enable further analysis, the controller gathered the following information: Manufacturing overhead $ 787,500 costs Direct labor hours: Basic Advanced Machine hours: Basic Advanced Required: Molding Assemble and Pack $562,500 Total $…
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Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows: Line Item Description Torch Elk Walloon Total Sales revenue $1,280 $185 $315 $1,780 Less: Variable expenses 1,115 45 252 1,412 Contribution margin $165 $140 $63 $368 Less direct fixed expenses: Depreciation 50 15 10 75 Advertising 95 85 76 256 Segment margin $20 $40 $(23) $37 Direct fixed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that, each of the three products has a different marketing campaign whose advertising would be eliminated if the associated product were dropped. Assume that 30% of the Torch customers choose to buy from Charlevoix because it offers a full range of products, including Walloon. If Walloon were no longer available from Charlevoix, these customers…
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Stella Company sells only two products, Product A and Product B. Product A $50.00 $36.00 Selling price Variable cost per unit Total fixed costs Product B $50.00 $21.00 A. 54,018 units of Product A and 27,009 units of Product B B. 57,000 units of Product A and 28,500 units of Product B C. 28,500 units of Product A and 57,000 units of product B D. 27,009 units of Product A and 54,018 units of Product B Total $1,539,500 Stella sells two units of Product A for each unit it sells of Product B. Stella faces a tax rate of 20%. Stella desires a net after-tax income of $68,000. The breakeven point in units would be (Round any intermediary calculation up to the next whole unit.)
A28