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Data table Sales Cost of goods sold Selling, general, and administrative expenses Operating income/loss A B с D 504,000 $ 948,000 $960,000 $ 1,240,000 440,000 930,000 96,000 202,500 $ (32,000) $ (184,500) $ $ Print Cost of goods sold Selling, general, and administrative expenses Division Further analysis of costs reveals the following percentages of variable costs in each division: Division B 80 % 50 % A 90 % 50 % Done 765,000 144,000 51,000 $ с 90 % 60 % D 85 % 60 % 925,000 210,000 105,000 ♥ >

Data table Sales Cost of goods sold Selling, general, and administrative expenses Operating income/loss A B с D 504,000 $ 948,000 $960,000 $ 1,240,000 440,000 930,000 96,000 202,500 $ (32,000) $ (184,500) $ $ Print Cost of goods sold Selling, general, and administrative expenses Division Further analysis of costs reveals the following percentages of variable costs in each division: Division B 80 % 50 % A 90 % 50 % Done 765,000 144,000 51,000 $ с 90 % 60 % D 85 % 60 % 925,000 210,000 105,000 ♥ >

FINANCIAL ACCOUNTING
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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Requirements 1. Calculate the increase or decrease in operating income if Ainsley closes division A. 2. Calculate the increase or decrease in operating income if Ainsley closes division B. 3. What other factors should the top management of Ainsley consider before making a decision? Print Done -
Transcribed Image Text:Requirements 1. Calculate the increase or decrease in operating income if Ainsley closes division A. 2. Calculate the increase or decrease in operating income if Ainsley closes division B. 3. What other factors should the top management of Ainsley consider before making a decision? Print Done -
Data table Sales Cost of goods sold Selling, general, and administrative expenses Operating income/loss A 504,000 $ 440,000 96,000 $ (32,000) $ (184,500) $ Cost of goods sold Selling, general, and administrative expenses Print Division Further analysis of costs reveals the following percentages of variable costs in each division: Division B 80 % 50 % Done B с D 948,000 $960,000 $1,240,000 930,000 765,000 202,500 144,000 A 90 % 50 % 51,000 $ C 90 % 60 % D 85 % 60 % 925,000 210,000 105,000 X
Transcribed Image Text:Data table Sales Cost of goods sold Selling, general, and administrative expenses Operating income/loss A 504,000 $ 440,000 96,000 $ (32,000) $ (184,500) $ Cost of goods sold Selling, general, and administrative expenses Print Division Further analysis of costs reveals the following percentages of variable costs in each division: Division B 80 % 50 % Done B с D 948,000 $960,000 $1,240,000 930,000 765,000 202,500 144,000 A 90 % 50 % 51,000 $ C 90 % 60 % D 85 % 60 % 925,000 210,000 105,000 X
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