Differential Income Analysis - Keep or Drop Product Line) Кeep Marvel Watches Drop Difference ((column G less column F Sales 500000 -500000 Less Costs Manufacturing expenses (variable) Depreciation Shipping Advertising (for Marvel Watches Product only) Rent (Marvel watch factory space) Sales Commissions General factory overhead (fixed) Salary of Marvel Watch line manager General Administration Expenses - Fixed 120000 50000 5000 100000 70000 75000 60000 90000 30000 1. Contribution Margin 2. subtotal of Variable Expenses 3. subtotal of Fixed Expenses 4. Net Operating Loss 5. What is differential Net Operating Loss (Advantage of Disadvantage) Do I drop the product line or keep it?
Differential Income Analysis - Keep or Drop Product Line) Кeep Marvel Watches Drop Difference ((column G less column F Sales 500000 -500000 Less Costs Manufacturing expenses (variable) Depreciation Shipping Advertising (for Marvel Watches Product only) Rent (Marvel watch factory space) Sales Commissions General factory overhead (fixed) Salary of Marvel Watch line manager General Administration Expenses - Fixed 120000 50000 5000 100000 70000 75000 60000 90000 30000 1. Contribution Margin 2. subtotal of Variable Expenses 3. subtotal of Fixed Expenses 4. Net Operating Loss 5. What is differential Net Operating Loss (Advantage of Disadvantage) Do I drop the product line or keep it?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:A
B
D
E
H
2
Differential Income Analysis - Keep or Drop Product Line)
3
4
5
Кеep
Drop
6
Marvel Watches
Difference ((column G less column F
7
8
Sales
500000
-500000
10
Less Costs
Manufacturing expenses (variable)
Depreciation
Shipping
Advertising (for Marvel Watches Product only)
Rent (Marvel watch factory space)
Sales Commissions
General factory overhead (fixed)
Salary of Marvel Watch line manager
General Administration Expenses - Fixed
11
120000
12
50000
13
5000
14
100000
15
70000
16
75000
17
60000
18
90000
19
30000
20
21
22
23
24
1. Contribution Margin
25
26
2. subtotal of Variable Expenses
27
3. subtotal of Fixed Expenses
28
29
4. Net Operating Loss
30
31
32
5. What is differential Net Operating Loss (Advantage of Disadvantage)
33
34
Do I drop the product line or keep it?
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