* CengageNOWv2 |x C Power Serve Comp. X ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentScssionLocator &inprogress=false eBook Calculator Print Item The conderised pruduct-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,800 $88,500 $27,600 Cost of goods sold (25,800) (32,100) (13,800) Gross profit $40,000 $56,400 $13,800 Selling and administrative expenses (29,000) (34,500) (14,500) $11,000 $21,900 $(700) Operating incorne (loss) Fixed costs are 12% of the cost of goods sold and 36% of the selling and administrative expenses. Rhinebeck Company assunes that fixed costs would not be materially affecter discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontiriued (Alternative 2). If an amount is zero, enter "0 indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers Differential Fffects Continue Mufflers (Alternative 1) (Altermative 2) (Alternative 2) 181900X $ 154,300 S 27,600 Revenues Costs: 59,556 X -12.144 71,700X Variable cost of goods sold 15,456 94,744 X 110,200 Variable selling and admin, expenses 9,280 78.000X 68,720 X Fixed costs 6,176X 32,200 S 26,024 Profit (Loss) Fearhank
* CengageNOWv2 |x C Power Serve Comp. X ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentScssionLocator &inprogress=false eBook Calculator Print Item The conderised pruduct-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,800 $88,500 $27,600 Cost of goods sold (25,800) (32,100) (13,800) Gross profit $40,000 $56,400 $13,800 Selling and administrative expenses (29,000) (34,500) (14,500) $11,000 $21,900 $(700) Operating incorne (loss) Fixed costs are 12% of the cost of goods sold and 36% of the selling and administrative expenses. Rhinebeck Company assunes that fixed costs would not be materially affecter discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontiriued (Alternative 2). If an amount is zero, enter "0 indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers Differential Fffects Continue Mufflers (Alternative 1) (Altermative 2) (Alternative 2) 181900X $ 154,300 S 27,600 Revenues Costs: 59,556 X -12.144 71,700X Variable cost of goods sold 15,456 94,744 X 110,200 Variable selling and admin, expenses 9,280 78.000X 68,720 X Fixed costs 6,176X 32,200 S 26,024 Profit (Loss) Fearhank
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:* CengageNOWv2 |x
C Power Serve Comp. X
ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentScssionLocator &inprogress=false
eBook
Calculator
Print Item
The conderised pruduct-line income statement for Rhinebeck Company for the month of October is as follows:
Rhinebeck Company
Product-Line Income Statement
For the Month Ended October 31
Hats
Gloves
Mufflers
Sales
$65,800
$88,500
$27,600
Cost of goods sold
(25,800)
(32,100)
(13,800)
Gross profit
$40,000
$56,400
$13,800
Selling and administrative expenses
(29,000)
(34,500)
(14,500)
$11,000
$21,900
$(700)
Operating incorne (loss)
Fixed costs are 12% of the cost of goods sold and 36% of the selling and administrative expenses. Rhinebeck Company assunes that fixed costs would not be materially affecter
discontinued.
a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontiriued (Alternative 2). If an amount is zero, enter "0
indicate a loss.
Differential Analysis
Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers
October 31
Discontinue
Mufflers
Differential
Fffects
Continue
Mufflers
(Alternative 1) (Altermative 2) (Alternative 2)
181900X $ 154,300
S 27,600
Revenues
Costs:
59,556 X
-12.144
71,700X
Variable cost of goods sold
15,456
94,744
X
110,200
Variable selling and admin, expenses
9,280
78.000X
68,720 X
Fixed costs
6,176X
32,200
S 26,024
Profit (Loss)
Fearhank
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education