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$100,000 $151,000 $201,000 Variable Cost49,000 74,000 101,000 Contribution Margin$51,000 $77,000 $100,000 Direct Fixed Cost19,000 30,000 40,000 Allocated Common Fixed Cost9,000 14,000 20,000 Net Income$23,000 $33,000 $40,000 D. Determine the cost and the amount that will remain even if Title X is dropped. $fill in the blank 6E. Which costs and amount will be eliminated if Title X is dropped? $fill in the blank 8 $fill in the blank 10 D. Determine the cost and the amount that will remain even if Title X is dropped.E. Which dropdown 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. Thefollowing information is available to make the decision.Title XTitle YTitle ZSales$100,000$151,000$201,000Variable Cost49,00074,000101,000Contribution Margin$51,000$77,000$100,000Direct Fixed Cost19,00030,00040,000Allocated Common Fixed Cost9,00014,00020,000Net Income$23,000$33,000$40,000

Differential Analysis: Differential analysis is a technique of evaluating the two alternatives by…

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	$100,000	$151,000	$201,000
Variable Cost	49,000	74,000	101,000
Contribution Margin	$51,000	$77,000	$100,000
Direct Fixed Cost	19,000	30,000	40,000
Allocated Common Fixed Cost	9,000	14,000	20,000
Net Income	$23,000	$33,000	$40,000

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

$fill in the blank 6

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

	$fill in the blank 8
	$fill in the blank 10

D. Determine the cost and the amount that will remain even if Title X is dropped.
E. Which dropdown 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
$100,000
$151,000
$201,000
Variable Cost
49,000
74,000
101,000
Contribution Margin
$51,000
$77,000
$100,000
Direct Fixed Cost
19,000
30,000
40,000
Allocated Common Fixed Cost
9,000
14,000
20,000
Net Income
$23,000
$33,000
$40,000

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