Buy Best is an electronic store having three operatingdepartments. An income statement for the most recentmonth of operations appears below.СоmputersTotalTVsRadiosSales$55,000$44,000S11,000$110,000VariableCosts33.00017,600Contribution Margin5,500 53,900Fixed Costs5,50056,10022,00026,400Direct, avoidable(5,000)(4,000)(4,000)Common, allocated basedon sales dollars(13,000)(10,000)(8.000)(2,000)_(20,000)Profit (Loss)$ 7,000$14,400(S500)$ 20,900A) If Buy Best were to drop the toy line and make no otherchanges to its operations, What would the income for themonth be?B) The space currently being used by the radio departmentcould be converted to a phone department. If this weredone, sales of the phones are expected to be $22,000with variable costs of $8,800 and avoidable direct fixedcosts of $3,000. Assuming no effects on the computersand TV departments, what would the income for themonth be?

Buy Best is an electronic store having 3 operating departments. 1. TV's 2. Radio's 3. Computers…

Buy Best is an electronic store having three operating departments. An income statement for the most recent month of operations appears below. Сomputers Total TV's Radios Sales $55,000 $44,000 $11,000 S110,000 Variable Costs 33.000 56,100 22,000 17,600 Contribution Margin 5,500 Fixed Costs Direct, avoidable 5,500 26,400 53,900 (5,000) (4,000) (4,000) Common, allocated based (13,000) on sales dollars (10,000) (8.000) (2,000) Profit (Loss) $ 20,900 _(20,000) $ 7,000 $14.400 (S 500) A) If Buy Best were to drop the toy line and make no other changes to its operations, What would the income for the month be? B) The space currently being used by the radio department could be converted to a phone department. If this were done, sales of the phones are expected to be $22,000 with variable costs of $8,800 and avoidable direct fixed costs of $3,000. Assuming no effects on the computers and TV departments, what would the income for the month be?

Buy Best is an electronic store having three operating departments. An income statement for the most recent month of operations appears below. Сomputers Total TV's Radios Sales $55,000 $44,000 $11,000 S110,000 Variable Costs 33.000 56,100 22,000 17,600 Contribution Margin 5,500 Fixed Costs Direct, avoidable 5,500 26,400 53,900 (5,000) (4,000) (4,000) Common, allocated based (13,000) on sales dollars (10,000) (8.000) (2,000) Profit (Loss) $ 20,900 _(20,000) $ 7,000 $14.400 (S 500) A) If Buy Best were to drop the toy line and make no other changes to its operations, What would the income for the month be? B) The space currently being used by the radio department could be converted to a phone department. If this were done, sales of the phones are expected to be $22,000 with variable costs of $8,800 and avoidable direct fixed costs of $3,000. Assuming no effects on the computers and TV departments, what would the income for the month be?

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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