EX 14-33 (Algo) Drop Product Line (LO 14-4, 14-5) Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. $ 17,600 6,800 4,300 3,900 6,800 4,400 $ 73,000 34,000 $ 39,000 43,800 $ (4,800)

EX 14-33 (Algo) Drop Product Line (LO 14-4, 14-5) Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year just ended. Sales Less: Cost of food Gross profit Less: Operating expenses: Wages of counter personnel Paper products (e.g., napkins) Utilities (allocated) Depreciation of counter equipment and furnishings Depreciation of building (allocated) Deli manager's salary (allocated) Total Loss on ice cream counter Required: Correct the owner's profit analysis for the year just ended. $ 17,600 6,800 4,300 3,900 6,800 4,400 $ 73,000 34,000 $ 39,000 43,800 $ (4,800)

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

Please do not give solution in image format thanku
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Do not give answer in image
Q2 Tool Industries manufactures large workbenches for industrial use. Sam Hartnet, the Vice President for marketing at Tool Industries, concluded from market analysis that sales were dwindling for Tool's workbenches due to aggressive pricing by competitors. Tool's workbench sells for $2,040 whereas the competition's comparable workbench sells for $1,780. Sam determined that a price drop to $1,780 would be necessary to protect its market share and maintain an annual sales level of 14,800 workbenches. Cost data based on sales of 14,800 workbenches: Budgeted Quantity Actual Quantity Actual Cost Direct materials (pounds) 184,000 177,000 $ 3,459,000 Direct labor (hours) 76,400 76,000 829,500 Machine setups (number of setups) 1,800 1,240 259,000 Mechanical assembly (machine hours) 33,600 285,750 3,768,000 The current cost per unit is (rounded to the nearest whole dollar): Multiple Choice $448. $390. $513. $562. $370.
1. COST BEHAVIOR ANALYSIS During this pandemic, almost all business lines experienced income instability, as experienced by PIZZA CALIFORNIA. For this reason, the company strives to reduce costs that are not value added. Below are the estimated costs and expenses for period 1 and period 2. Assumption of Relevant Range of 10,000 to 20,000 units. COST / EXPENSE PERIODE I PERIODE IV Unit production/unit sold 12,000 18,000 Direct material used $ 45,000 $ 67,500 Direct Labor cost 33,000 49,500 Production supervisors salaries 13,500 13,500 Directors salaries 26,500 26,500 Depreciation expense - factory building 11,500 11,500 Depreciation expense - factory equipment 7,700 7,700 Overtime Premium 49,500 74,250 Marketing person salaries 30,000 43.000 Utilities expense - factory 25,,480 34,720 Rent expense - store 2,700 2,700 Property tax - factory 2,300 2,300 Indirect…
Dropping or Retaining a Segment Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors?home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s net operating income of $5,000 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.…
Please do not give solution in image format thanku
Please do not give solution in image format thanku
1. A hotel receives advance payment of 2,500,000 from a conference organizer. This is not a sale due to the ______ principle. 2. Resto Supplies, Inc. takes a 32,000 loss on a number of older ovens in its inventory; it paid the manufacturer 107,000 for them but can sell them for only 75,000 Choices: a. Full disclosure principle b. Time period assumption c. Materiality constraint d. Cost Principle e. Revenue recognition principle f. Conservatism Constraint g. Matching principle h. Economic entity assumption i. Monetary unit j. Going concern k. Some other answers
A-6