BC Co. plans to discontinue a department that has a contribution margin of P60,000 and P100,000 in fixed costs. Of the fixed costs, P60,000 would still continue even if the department is closed. The effect of this discontinuance on Indian’s overall net operating income would be A. Zero effect B. increase of P20,000 C. decrease of P20,000 D. increase of P40,000   Answer with explanation please. Thank you

Q: A firm contemplates to drop a segment that shows a contribution margin of P25,000. Overhead…

A: Solution: Effect of this discontinuance on the company’s profit before tax = Avoidable overhead…

Q: answer must be in table format or i will give down vote

A: Variable production cost  Production130 Selling50 Total Variable cost 180Avoidable fixed cost…

Q: Sunland Company is deciding whether or not to discontinue one of its divisions. The division's…

A: The contribution is calculated as difference between sales sand variable costs. If contribution…

Q: Cumulus Corporation is considering the addition of a new product line. The expected annual revenue…

A: Lets understand the basics.CONTRIBUTION MARGINContribution Margin is Computed by deducting Total…

Q: A company has two products: A and B. Management is considering eliminating Product A based on the…

A: When a product is discontinued the sales and all the variable expenses are eliminated, and the…

Q: Crane Corporation is considering a eliminating a department that has incurred losses over the past…

A: The elimination of a department leads to decrease in the income with the loss of contribution margin…

Q: RelyaTech Corporation makes an extra large part to use in one its fabulous products. A total of…

A: Direct costs are the expenses that are directly used for the production of goods and services for…

Q: P210,000 190,000 P 20,000 50,000 P (30,000)

A: Solution: Change in net income for the current year from the discontinuance of Product G2 =…

Q: None

A: When faced with the decision to make or buy a product, businesses must carefully evaluate the costs…

Q: The management of NUBDCorporation is considering dropping product D4. Data from the company's…

A: Differential analysis: This is a technique of management accounting where in changes in revenues,…

Q: solve this one with correct answer and explanation. please provide both answer without fails i need…

A: Special order price         17.50 Variable manufacturing costs        (11.00)Additional CM from…

Q: I need answer expert solutions Need answer step by step

A: The objective of this question is to calculate the change in the break-even level of revenues for a…

Q: B) C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a…

A: Operating income or loss is the amount of money earned or loss incurred by the entity from its daily…

Q: Gion Company is considering eliminating its Windows division, which reported a loss for the prior…

A: When assessing a company's operational efficiency and profitability, investors, analysts, and…

Q: Geo Company's western territory's forecasted income statement for the upcoming year is as follows:…

A: Operating loss is the loss which incurs when the expenses from the operations of business are more…

Q: Charles Schwab Corporation is one of the more innovative brokerage and financial service companies…

A: Charles Schwab Corporation is one of the more innovative brokerage, has two business segments:…

Q: Contribution Margin of Walls Corporation, Consumer division isRs. 1900,000 and the fixed expenses is…

A: Formula: Contribution margin = Sales - variable cost Deduction of variable cost from sales value…

Q: Your manager has asked you to determine the impact of certain costs on profits and communicate this…

A: Variable cost: Variable cost means cost which depends on number of units produced. Variable cost…

Q: Pepper Industries has three product lines, A, B, and C. The following information is available:…

A: There are multiple types of business costs. The three main costs are known as variable costs, fixed…

Q: nese market f- The Tokyo get:

A: Ans 1               If total sales units are 3400 then  net return will be as follows --…

Q: AP&P is considering eliminating its web design division because it is not profitable. Below is the…

A: The amount that a person or business makes after costs, allowances, and taxes is referred to as net…

Q: Would your answer be different if the released productive capacity will generate additional income…

A: To determine whether the decision to make or buy would be different with the additional income from…

Q: Assume a retalling company has two departments-Department A and Department B. The company's most…

A: The phrase "relevant cost" in management accounting refers to avoidable expenses that are only…

Q: The records of Valium Company show a contribution margin ratio of 25%. The company desires to earn a…

A: Units to be sold for earning desired profit will be number of units at which business is recovering…

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: Q1: Zeal Corporation is thinking about the dropping of its product Z. Sales of the product total…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales…

A: The objective of the question is to calculate the Return on Investment (ROI) for the Atlantic…

Q: Current Attempt in Progress A company has three product lines, one of which has the following…

A: In situations where a product line or segment tends to underperform, there arises a need to decide…

Q: Segment analysis for a service company Charles Schwab Corporation (SCHW) is one of the more…

A:

Q: DULTICO level of 100,000., profit would not change. What would happen to the company's profit if the…

A: 1. Variable Cost: It is a cost which varies with the change in the level of production. A per unit…

Q: A company Is considering a new project that will cost $19,000. This project would result In…

A: $19,000 is a cost that will only increase or incurred if the new project is undertaken.

Q: Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of…

A: Given, Contribution margin = $ 49000   Total Fixed Costs = $ 96000 Unavoidable FC = $ 42000…

Q: Q3.…

A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…

Q: , door-to-door solution for residential and commercial removals. As the market for removal services…

A: Operational income is a financial ratio that measures after operating expenses, which are the costs…

Q: The Atlantic Division of Oriole Productions Company reported the following results for 2022: Sales…

A: Ratio analysis used identify the business performance of the company.It is used to measure financial…

Q: Explain the terms break-even point and margin of safety as used in cost-volume-profit (CVP) analysis…

A: Solution:- Calculation of the above requirements as follows under:- Basic details: Total revenue…

Q: Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and…

A: Net profit or loss is the amount of income earned or loss incurred by the entity. It is shown in the…

Q: Bright Times Co. is considering closing the table lamp segment. Current revenue was $78,000, with…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is one of the Important Cost…

Q: Want Answer

A: To address the questions about X Company's two products, A and B, we need to analyze the financial…

Q: Contribution Margin of Walls Corporation, Consumer division is Rs. 1900,000 and the fixed expenses…

A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…

Q: 2 Fabri Corporation is considering eliminating a department that has an annual contribution margin…

A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…

Q: Assume a company is considering adding a new product line with the following estimated cost and…

A: Variable Cost -A cost that changes based on production volume or quantity of services rendered is…

Q: Determine the minimum transfer price that Cutting Division would accept. 2. Determine the maximum…

A: Ans 1. Minimum transfer price cutting division would accept = Its variable cost being incurred to…

Q: A company has three product lines, one of which has the following results: Sales $214000 Variable…

A: Income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: 2. Unconditionally Corporation estimated that the company can sell 200,000 units of a product next…

A: Lets understand the basics. For calculate charge per unit, we can reverse calculate from desired…

Q: Please provide solutions for this Question solve all please

A: 2) The total period cost is computed based on the following formula. Period Cost = (Sales - Cost of…

Q: Management and accounting Spencer Company is considering closing one of its product lines. Current…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…