Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. Title X Title Y Title ZSales$101,000 $151,000 $201,000 Variable Cost51,000 76,000 99,000 Contribution Margin$50,000 $75,000 $102,000 Direct Fixed Cost19,000 29,000 41,000 Allocated Common Fixed Cost10,000 15,000 20,000 Net Income$21,000 $31,000 $41,000 A. What is the total income if all titles were produced?$_____B. If Title X was dropped, what would be the effect on Net Income?$_____ _____C. How much did Title X Contribute to Fixed Costs?$_____D. Determine the cost and the amount that will remain even if Title X is dropped._____ $_____E. Which costs and amount will be eliminated if Title X is dropped?_____ $__________ $_____ Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision.Title XTitle YTitle ZSales$101,000$151,000$201,000Variable Cost51,00076,00099,000Contribution Margin$50,000$75,000$102,000Direct Fixed Cost19,00029,00041,000Allocated Common Fixed Cost10,00015,00020,000Net Income$21,000$31,000$41,000A. What is the total income if all titles were produced?B. If Title X was dropped, what would be the effect on Net Income?C. How much did Title X Contribute to Fixed Costs?D. Determine the cost and the amount that will remain even if Title X is dropped.E. Which costs and amount will be eliminated if Title X is dropped?

An income statement is a financial statement that reports a company's revenue, expenses, and net…

Answered: Hong Publishing has purchased Lang…

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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Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision.

	Title X	Title Y	Title Z
Sales	$101,000	$151,000	$201,000
Variable Cost	51,000	76,000	99,000
Contribution Margin	$50,000	$75,000	$102,000
Direct Fixed Cost	19,000	29,000	41,000
Allocated Common Fixed Cost	10,000	15,000	20,000
Net Income	$21,000	$31,000	$41,000

A. What is the total income if all titles were produced?

$_____

B. If Title X was dropped, what would be the effect on Net Income?

$_____ _____

C. How much did Title X Contribute to Fixed Costs?

$_____

D. Determine the cost and the amount that will remain even if Title X is dropped.

_____ $_____

E. Which costs and amount will be eliminated if Title X is dropped?

_____ $_____

Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision.
Title X
Title Y
Title Z
Sales
$101,000
$151,000
$201,000
Variable Cost
51,000
76,000
99,000
Contribution Margin
$50,000
$75,000
$102,000
Direct Fixed Cost
19,000
29,000
41,000
Allocated Common Fixed Cost
10,000
15,000
20,000
Net Income
$21,000
$31,000
$41,000
A. What is the total income if all titles were produced?
B. If Title X was dropped, what would be the effect on Net Income?
C. How much did Title X Contribute to Fixed Costs?
D. Determine the cost and the amount that will remain even if Title X is dropped.
E. Which costs and amount will be eliminated if Title X is dropped?

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