Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is availableregarding its canoe segment. Should management discontinue the manufacturing of canoes? Income Statement-Canoe SegmentSales ...$2,000,000Varlable costsDirect materlals.Direct labor.....Varlable overhead....$450,000500,000300,000Varlable selling and administrativeTotal varlable costs...Contribution margin..200,0001,450,000550,000Fixed costsDirect375,000Indirect ....300,000Total fixed costs675,000Net Income..S (125,000)

Fixed costs can be divided into direct fixed costs that are related to a specific product or segment…

Income Statement-Canoe Segment Sales ... $2,000,000 Varlable costs Direct materlals. Direct labor..... Varlable overhead.... $450,000 500,000 300,000 Varlable selling and administrative Total varlable costs... Contribution margin.. 200,000 1,450,000 550,000 Fixed costs Direct 375,000 Indirect .... 300,000 Total fixed costs 675,000 Net Income.. S (125,000)

Income Statement-Canoe Segment Sales ... $2,000,000 Varlable costs Direct materlals. Direct labor..... Varlable overhead.... $450,000 500,000 300,000 Varlable selling and administrative Total varlable costs... Contribution margin.. 200,000 1,450,000 550,000 Fixed costs Direct 375,000 Indirect .... 300,000 Total fixed costs 675,000 Net Income.. S (125,000)

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

Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Fast Wire Incorporated for 2021 and 2022 relative to the insertion of DTV-12. 2021 2022 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $ 1,443,750 $ 2,333,750 Direct labor wage rate per hour $ 67 $ 82 The partial operational productivity ratio of DTV-12 in 2022 is: Multiple Choice 0.63 per unit. 0.73 per unit. 1.92 per unit. 3.00 per unit. 3.33 per unit.
Juice WORLD Company makes and sells gourmet juices and is looking to purchase a new, more efficient fruit peeler system. Which of the following would not be relevant in making the decision? The per-year power cost of the new system The installation cost of the new system The per year power cost of the current system The original price of the current system O The capacity of the current freezer system
Golden Tours, Inc., operates tours throughout the United States. A study has indicated that some of the tours are not profitable, and consideration is being given to dropping these tours to improve the company’s overall operating performance. One such tour is a two-day Historic Mansions bus tour conducted in the southern states. An income statement from a typical Historic Mansions tour is given below: Ticket revenue (110 seat capacity × 45% occupancy × $60 ticket price per person) $ 2,970 100 % Variable expenses ($18 per person) 891 30 % Contribution margin $ 2,079 70 % Tour expenses: Tour promotion $ 650 Salary of bus driver 330 Fee, tour guide 690 Fuel for bus 130 Depreciation of bus 330 Liability insurance, bus 180 Overnight parking fee, bus 50 Room and meals,…
This is a repost. Please read questions carefully as original response was entirely incorrect
James is considering replacing his worn-out machines. Which of the following is not a relevant cost for James when considering various available options? Select one: a. Changes in costs of labour needed to operate the new machines. b. Costs of acquiring the current worn-out machines. c. Costs of delivering the new machine. d. Costs of replacing old machines. e. None of the above answers is correct.
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.
Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company’s chief financial officer (CFO) to Jim Fielding, the company controller, included the following comments:If we don’t do something about the large amount of unsold computers already manufactured, our auditors will require us to record a write-down. The resulting loss for 2021 will cause a violation of our debt covenants and force the company into bankruptcy. I suggest that you ship half of our inventory to J.B. Sales, Inc., in Oklahoma City. I know the company’s president, and he will accept the inventory and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost our loss to a profit. Then J.B. Sales will simply…
please explain your answer and do not plagrized from other sources
Break into teams and identify costs that an airline such as Delta Air Lines would incur on a flight from Green Bay to Minneapolis. (1) Identify the individual costs as variable or fixed. (2) Assume that Delta is trying to decide whether to drop this flight because it seems to be unprofitable. Determine which costs are likely to be saved if the flight is dropped.