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 ♥ >
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 21BEA: Quality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs...
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Question
please avoid answer in image thanku
![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
-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2Fffd89262-ce9b-4ffb-98db-158d48762dc7%2Fzl0ulei_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96f1460f-c30c-40f6-b439-129c05adb630%2Fffd89262-ce9b-4ffb-98db-158d48762dc7%2Ft3frqn_processed.png&w=3840&q=75)
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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