Exercise 23-8 (Algo) Segment elimination LO P4 Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $335,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? $ 1,117.200 798.000 319.200 382.000 $ (62.800) Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income (loss) Continue $ 0 Eliminate 0 S < Required A 0 Income Increase (Decrease) 0 $ 0 Required B >

Exercise 23-8 (Algo) Segment elimination LO P4 Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $335,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? $ 1,117.200 798.000 319.200 382.000 $ (62.800) Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income (loss) Continue $ 0 Eliminate 0 S < Required A 0 Income Increase (Decrease) 0 $ 0 Required B >

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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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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Required Information Problem 18-4A (Algo) Break-even analysis, different cost structures, and income calculations LO C2, A1, P2 [The following information applies to the questions displayed below.] Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 42,000 units of each product. Income statements for each product follow. Sales Variable costs Contribution margin Fixed costs Income Problem 18-4A (Algo) Part 3 Contribution margin 3. Assume that the company expects sales of each product to increase to 56,000 units next year with no change in unit selling price. Prepare a contribution margin Income statement for the next year (as shown above with columns for each of the two products). (Rour "per unit" answers to 2 declmal places.) Fixed costs Sales Variable cost Carvings $ 47,600 523,320 224,280 108,280 $ 116,000 Mementos…
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CONTINUE OR DISCONTINUE OPERATING A BUSINESS SEGMENT Beth Neri Enterprises sells three products, Skinny, Bony and Thinny. Beth, the proprietor, is concerned about the losses incurred by Thinny, and is considering to discontinue its production and sales. Sales and costs data about Beth Neri's three products are as follows: Skinny P 5 Bony P 7 Thinny P 9 Total P 21 Sales Variable cost per unit Contribution margin 12 4 2 9. Fixed cost per unit Profit (loss) per unit Р 2 P 2 P( 1) P 3 Fixed costs are allocated among the three products based on the floor area they occupy. Beth is thinking that if she would eliminate Thinny, its loss of P1 per unit would likewise be eliminated thereby increasing her total profit per unit from P3 [P2 + P2 - P1] to P4 [P2 + P2]. Is Beth's analysis correct?
Subject : accounting
Subject-Acounting
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