Discontinue a Segment Product Tango has revenue of $194,900, variable cost of goods sold of $113,900, variable selling expenses of $32,900, and fixed costs of $58,300, creating an operating loss of $(10,200). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango Tango (Alternative 2) (Alternative 1) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

Discontinue a Segment Product Tango has revenue of $194,900, variable cost of goods sold of $113,900, variable selling expenses of $32,900, and fixed costs of $58,300, creating an operating loss of $(10,200). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango Tango (Alternative 2) (Alternative 1) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2).

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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URGENT Show Transcribed Text wwwwww 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Sictions: On Sales Variable costs Contribution margin Fixed costs Net income Tremaine Inc. has three product lines: A, B, and C. A B a. $10,000 b. $20,000 c. $30,000 d. $40,000 Show Transcribed Text $50,000 30,000 20,000 23.000 $ (3,000) J Accessibility: Investigate C S a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by…
Discontinue a Segment Product AG52 has revenues of $193,100, variable cost of goods sold of $115,300, variable selling expenses of $32,100, and fixed costs of $60,400, creating a loss from operations of $14,700. a. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Product AG52 (Alt. 1) or Discontinue Product AG52 (Alt. 2) October 7 Continue Product AG52 (Alternative 1) Discontinue Product AG52 (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank 90a9a2fd8063fea_1 $fill in the blank 90a9a2fd8063fea_2 $fill in the blank 90a9a2fd8063fea_3 Costs: Variable cost of goods sold fill in the blank 90a9a2fd8063fea_4 fill in the blank 90a9a2fd8063fea_5 fill in the blank…
Discontinue a Segment Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expenses of $275,000, and fixed costs of $125,000, creating an operating loss of $(100,000). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) Continue Discontinue Product Product Tango Tango (Alternative 1) (Alternative 2) 0000 Differential Effects (Alternative 2)
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The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $7320007 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
Process or Sell Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.12 per gallon, or processed further into Product R33 at an additional cost of $0.37 per gallon. Product R33 can be sold for $4.44 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product J19 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit $ $ b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
The Alligator segment of Carla Vista Specialty Meats is operating at a loss and has the following data: Sales S 576000 Variable expenses 403200 Fixed expenses 288000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. Select answer from the options below $28800 increase. $28800 decrease. $345600 increase. $144000 increase.
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Subject: accounting
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Variable Costing Income Statement and Effect on Income of Change in OperationsKimbrell Inc. manufactures three sizes of utility tables—small (S), medium (M), and large (L). The income statement has consistently indicated a net loss for the M size, and management is considering three proposals: (1) continue Size M, (2) discontinue Size M and reduce total output accordingly, or (3) discontinue Size M and conduct an advertising campaign to expand the sales of Size S so that the entire plant capacity can continue to be used.If Proposal 2 is selected and Size M is discontinued and production curtailed, the annual fixed production costs and fixed operating expenses could be reduced by $142,500 and $28,350, respectively. If Proposal 3 is selected, it is anticipated that an additional annual expenditure of $85,050 for the salary of an assistant brand manager (classified as a fixed operating expense) would yield an additional 130% in Size S sales volume. It is also assumed that the increased…