At what amount of avoidable fixed costs would Marigold be indifferent to keeping or dropping the mense, considering vquantitative information?Avoidable foxed costs $ Current Attempt in ProgressMarigold, Inc., a producer of shower products, is evaluating the profitability of its men's, women's, and children's product lines.According to the information below, the men's category is unprofitable.SalesMen's Shower ProductsVariable costsContribution marginFixed costsOperating income (loss)$136,00094,00042.00058,000$(16,000)Marigold has been having difficulty tapping into the men's market for shower products but strategically would like to have a verybroad product offering. If it drops the men's product line, though, it could free up $30,000 in fixed costs. Having a bit more flexibility inits use of resources could be helpful in improving Marigold's other offerings

Lets understand the basics.Management have to choose between whether to continue production or stop…

Current Attempt in Progress Marigold, Inc., a producer of shower products, is evaluating the profitability of its men's, women's, and children's product lines. According to the information below, the men's category is unprofitable. Men's Shower Products Sales Variable costs Contribution margin Fixed costs Operating income (loss) $136.000 94,000 42.000 58,000 $(16,000) Marigold has been having difficulty tapping into the men's market for shower products but strategically would like to have a very broad product offering. If it drops the men's product line, though, it could free up $30,000 in fixed costs. Having a bit more flexibility in its use of resources could be helpful in improving Marigold's other offerings

Current Attempt in Progress Marigold, Inc., a producer of shower products, is evaluating the profitability of its men's, women's, and children's product lines. According to the information below, the men's category is unprofitable. Men's Shower Products Sales Variable costs Contribution margin Fixed costs Operating income (loss) $136.000 94,000 42.000 58,000 $(16,000) Marigold has been having difficulty tapping into the men's market for shower products but strategically would like to have a very broad product offering. If it drops the men's product line, though, it could free up $30,000 in fixed costs. Having a bit more flexibility in its use of resources could be helpful in improving Marigold's other offerings

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cymbal E-Motors is a fast-growing start-up firm that manufactures electric motors for bicycles. The following Income statement is avallable for April: Sales revenue (800 units @ $1,200 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits $ 960,000 60,800 54,000 124,500 62,000 $ 301,300 $ 658,700 Sales volume is expected to increase by 30 percent in May, but the sales price is expected to fall 5 percent. Varlable manufacturing costs are expected to Increase by 7.5 percent per unit in May. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 15 percent. All revenues and costs at Cymbal are cash transactions, except for depreciation. Cymbal maintains no Inventories. Depreciation is fixed and is forecast to remain unchanged in the next six months.…
please no excel!! please show all work and calculations thank you
Pls provide proper steps with explanation
es Due to erratic sales of its sole product-a high-capacity battery for laptop computers-PEM, Incorporated, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below: Sales (13,300 units x $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss Required: 1. Compute the company's CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,300 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $84,000 per month. If the president is right, what will be the increase (decrease) in the company's monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the monthly advertising budget, will double unit sales. If the sales…
D ue to erratic sales of its sole product, a high capacity battery for laptop computers, Salcedo Company has been experiencing difficulty for some time. The company's income statement for the most recent month is given below: Sales (19,500 units @ P500) P9,750,000 Less variable expenses (7,995,000) Contribution margin 1,755,000 Less fixed expenses 1,800,000 Net loss P (45,000) The Marketing Department thinks that a fancy new package for the laptop computer battery would help sales. The new package would increase packaging costs by P7.50 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of P262,500?
Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?
1
Hardev
1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2.Should the production and sales of racing bikes be discontinued?
Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?