REQUIRED:How much of the common fixed cost of $200,000 can be avoided by eliminating the bar? Choose the answer and explain.a. None of itb. Some of itc. All of it Assume that Leisure Group prepared its segmented income statement as shown.Income StatementLeisure GroupBarGroup$800,000RestaurantSales$100,000$700,000Variable Costs310,00060,000250,000см490,00040,000450,000Traceable FC246,00026,000220,000Segment Margin244,00014,000230,000Common Costs200,000Profit44,000

Common fixed cost means the fixed cost that cannot be directly linked to a particular activity or…

Answered: common fixed cost of $200,000 can be…

Business

Accounting

common fixed cost of $200,000 can be avoided by eliminating the ba

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Saalfrank Corporation is considering two alternatives that are code-named M and N. Costs associated…

A: Relevant costs are expenses or expenditures that are pertinent to a specific decision-making…

Q: What is the incremental profit?

A: Introduction:- CVP analysis is used to identify the changes in costs and volume affect a…

Q: What is the incremental profit?

A: Incremental analysis is a decision-making tool used to analyse financial information.Through the…

Q: Bramble Inc. is considering the following alternatives: Alternative 1 Alternative 2 $119000 65100…

A: Variable cost means the cost which vary with the level of output which means that variable cost…

Q: You are consldering a new product launch. The project will cost $2,400,000, have a four- year life,…

A: Hi, Thanks for posting the question. But per Q&A guidelines, the solution for the first three…

Q: Please correct answer and don't use hend raiting

A: Step 1: All missing variables can be calculated using the formula of Accounting breakeven -…

Q: Can you explain what operating costs of B on the Y equal to C in Lamens terms? I don't understand…

A: In simpler terms, the operating cost for B on the Y route is the same as the operating cost for C on…

Q: 3.2 Consider the time-cost table below and its network. Suppose indirect cost is $1.50 per day.…

A: Identifying the Critical Path:From the network diagram, we identify three potential paths: A ->…

Q: To be profitable, a firm has recover its costs. These costs include both its fixed and its variable…

A: Break even Point:Break even point signifies the specific level of sales or revenue that balances out…

Q: The following information is provided: Possible future demand with probabilities Decision…

A: For Single bag maxium payoff is 9 clutch bag=12 large bag=14

Q: How do you calcuate the Lower-of-Cost-or-Market ? Problem : If cost is $13 Replacement…

A: Answer and calculations are given below

Q: H geNOWv2 | Online teachin X +…

A: Solution... Fixes costs = $295,000 - $41,500 = $253,500 Selling price per unit = $30…

Q: Incremental costs are the generated by a proposed alternative. A) additional revenues B) additional…

A: Incremental cost and incremental revenue are used in differential analysis. These are used to…

Q: Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated…

A: Alternative is said to be financial advantageous when the total cost of one alternative is less than…

Q: 2 Saalfrank Corporation is considering two alternatives that are code-named M and N. Costs…

A: RELEVANT COST Relevant cost is the cost that is different between different alternatives. This cost…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Option a: This option is incorrect because variable cost per unit typically remains constant within…

Q: A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: a. Assume that there would be no variable sales commission on this special order. Determine the…

A: To determine the lowest unit price that Atlas Corp. can bid without reducing its current level of…

Q: (LG 7.3) Which of the following is a capital cost? a. Anew printer. b. Paper for a new printer. c.…

A: Capital costs seem to be funds used by an organization to acquire, enhance, or maintain long-term…

Q: If the fixed costs are 50,000 Dollars and the variable cost can be expressed as VC(Q)=10Q dollars…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The margin…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: The IS curve is found from the equation Y = Cd + Id + G = 150 + 0.5(Y - 250) - 500r + 100 - 500r+…

Q: Z Company is planning to outsource one of its main materials in producing tables. If said materials…

A: Fixed costs are costs that remains constant and does not affect with the number of units produced or…

Q: Your answer is incorrect. Paul believes the restaurant could greatly improve its profitability by…

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

Q: Is activity-based costing always beneficial to an organization? in what situations would itb…

A: Activity based costing is a system of costing in which allocated on the basis of activity done .it…

Q: In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate…

A: Given Data: Accounting Break evenUnit PriceUnit Variable costFixed CostDepreciation…

Q: cholastic Tours is trying to decide which one of two tours it will Introduce. The costs and revenues…

A: The incremental costs are the additional costs incurred compared to others. The net income is…

Q: Capacity in units Selling price to outside customers on the intermediate market Variable costs per…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the Maximax Regret method: SA. Using the Minimax Regret decision method list your decision…

A: Solution- (5)- The maximax criterion is also known as optimistic decision criteria is a…

Q: Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation…

A: Step 1:Relevant cost is the cost which is changes from one alternative to other alternative.…

Q: Lantz Family Restaurant operates in a suburb of a major city. Recently, the managers at Lantz have…

A: A differential cost analysis or incremental cost analysis is prepared for managerial decision-making…

Q: plese answer correctly by giving me the right answer make sure there is no error; use the excel…

A: Explanation:Step 1: Accounting Break-Even QuantityTo calculate the accounting break-even quantity,…

Q: Requirements 1. Identify the expected net costs that Cool Systems will incur to acquire 79,000…

A: When business has alternatives of either manufacture the product or purchase the product, then it…

Q: a. What will be b. Assuming the owner wants to maintain the original "bottom line" pro [profit]…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Question

REQUIRED:

How much of the common fixed cost of $200,000 can be avoided by eliminating the bar? Choose the answer and explain.
a. None of it
b. Some of it
c. All of it

Assume that Leisure Group prepared its segmented income statement as shown.
Income Statement
Leisure Group
Bar
Group
$800,000
Restaurant
Sales
$100,000
$700,000
Variable Costs
310,000
60,000
250,000
см
490,000
40,000
450,000
Traceable FC
246,000
26,000
220,000
Segment Margin
244,000
14,000
230,000
Common Costs
200,000
Profit
44,000

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!

SEE SOLUTION Check out a sample Q&A here

Concept of common fixed cost

VIEW

Common fixed cost in the given case

VIEW

Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 106,000 $ 50 $ 40 $ 850,000 125,000 50 5,000,000 1,000,000 16,000 60 380,000 100,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Con Supplies costs Power costs Inspection costs Assembly costs a. Supplies costs a. Power costs Alternative Q Alternative R $ 67,000 $ 67,000 $ 31,000 $ 30,100 $ 30,100 $ 35,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat b. What is the differential cost between the two alternatives? a. Inspection costs a. Assembly costs b. Differential cost $ 21,000 $ 35,000 ६
Ma4. Please give only typed answer.
Please do not give image format
Alert for not submit AI generated answer. I need unique and correct answer. Don't try to copy from anywhere. Do not give answer in image formet and hand writing
Hazlett & Family is organized into two geographic markets Northern and Southern. The company makes an off-road vehicle for recreation and agricultural use. The vehicle is sold in three models, depending on the power and options. The three models, from least expensive to most expensive, are the H-L, H-LX, and H-LXS. The company's financial staff has prepared the following forecasted income statement for the upcoming fiscal year (in thousands of dollars): Sales revenue Cost of goods sold Gross margin Marketing costs Administrative costs Total marketing and administrative Operating profits Total $ 59,400 46,050 $ 13,350 H-L H-LX H-LXS 4,875 2,421 $ 7,296 $ 6,054 Management has expressed special concern with the Southern market because of the extremely poor return on sales. This market was entered a year ago because it seemed like the best opportunity for growth. Hazlett & Family knew that it would take some time to build profitability in the market, but there has been no noticeable change…
Please solve accurately. Thank you
Please do not give solution in image format ?.