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Following are sales and other operating data for the three products made and sold by Marine Marine Enterprises Sales Manufacturing costs: Fixed Variable Selling and administrative expenses: Fixed Product A B с Total $153,000 $90,400 $247,500 $490,900 $14,600 $34,100 $34,100 $29,600 $78,300 110,700 33,300 132,100 276,100 5,200 32,100 9,300 46,600

Following are sales and other operating data for the three products made and sold by Marine Marine Enterprises Sales Manufacturing costs: Fixed Variable Selling and administrative expenses: Fixed Product A B с Total $153,000 $90,400 $247,500 $490,900 $14,600 $34,100 $34,100 $29,600 $78,300 110,700 33,300 132,100 276,100 5,200 32,100 9,300 46,600

FINANCIAL ACCOUNTING
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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Following are sales and other operating data for the three products made and sold by Marine Enterprises: Marine Enterprises Sales Manufacturing costs: Fixed Variable Selling and administrative expenses: Fixed Variable Total costs Net income (loss) Product Product B Expected change in revenue Expected change in VOH Expected change in Sell & Admin. Expected change in Operating Income Submit All Parts A B с Total $153,000 $90,400 $247,500 $490,900 In view of the net loss shown for Product B, company management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product B were dropped; all fixed costs are indirect costs and would not be eliminated. Assume that the space used to produce Product B would be left idle. $14,600 $34,100 $29,600 $78,300 110,700 33,300 132,100 276,100 Would you recommend the elimination of Product B? Give supporting computations. Select an answer 5,200 32,100 9,300 46,600 12,260 2,260 4.800 5.200 $132,760 $104,300 $176,200 $413,260 $20,240 ($13,900) $71,300 $77,640
Transcribed Image Text:Following are sales and other operating data for the three products made and sold by Marine Enterprises: Marine Enterprises Sales Manufacturing costs: Fixed Variable Selling and administrative expenses: Fixed Variable Total costs Net income (loss) Product Product B Expected change in revenue Expected change in VOH Expected change in Sell & Admin. Expected change in Operating Income Submit All Parts A B с Total $153,000 $90,400 $247,500 $490,900 In view of the net loss shown for Product B, company management is considering dropping that product. All variable costs are direct costs and would be eliminated if Product B were dropped; all fixed costs are indirect costs and would not be eliminated. Assume that the space used to produce Product B would be left idle. $14,600 $34,100 $29,600 $78,300 110,700 33,300 132,100 276,100 Would you recommend the elimination of Product B? Give supporting computations. Select an answer 5,200 32,100 9,300 46,600 12,260 2,260 4.800 5.200 $132,760 $104,300 $176,200 $413,260 $20,240 ($13,900) $71,300 $77,640
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