Jake Company has three product lines, one of which has the following results: Sales                                              P215,000 Variable expenses                           125,000 Contribution margin                            90,000 Fixed expenses                                130,000 Net loss                                          P (40,000) If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines.  If management decides to eliminate this product line, how much will the company's net income or loss be?

Q: crease by 5,800 units? a. $81,200 increase b. $152,600 increase $54, the unit variable costs are…

A: Answer : Calculation of operating income change if sales volume increase by 5800 units : Operating…

Q: result of discontinuing Product X, th

A: Company may choose to discontinue a loss making or less profitable product after considering the…

Q: Z Company plans to discontinue a department with the following average monthly operating results:…

A: Lets understand the basics. In cost accounting, management needs to choose between various…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 20%, by how…

A: The contribution margin is calculated after deducting the variable cost from the revenue.

Q: Spice Inc.'s unit selling price is $46, the unit variable costs are $31, fixed costs are $106,000,…

A: Values given in the question Unit selling Price = $46 Unit variable cost = $31   Contribution per…

Q: What would happen to the company's profit if the changes were implementedand production decreased to…

A: The correct answer is  b. It will decrease

Q: Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the…

A: Total Sales: The total sales are the fixed cost, variable cost, and profit income. here variable…

Q: Spice Inc.'s unit selling price is $50, the unit variable costs are $36, fixed costs are $118,000,…

A: Operating Income A company's gross income, which is equal to total revenue less cost of products…

Q: Spice Inc.'s unit selling price is $53, the unit variable costs are $34, fixed costs are $101,000,…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Log Co has an operating gearing ratio of 33.33%. Its sales are currently $100m and its operating…

A: The operating gearing ratio, also known as the operating leverage ratio, measures the extent to…

Q: Vaughn Company has fixed costs of $196000 and variable costs are 60% of sales. What is Vaughn…

A: $539000Explanation:To find out Vaughn Company's sales when its operating income equals $19,600, we…

Q: The effect on the firm's profits if the Headphone product is dropped would be:

A: Profits are the bottom line of the income statements of companies. They are usually arrived at after…

Q: Bonita Industries requires sales of $1500000 to cover its fixed costs of $800000 and to earn net…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Blossom Company had the following operating data for the current year: sales, $460000; contribution…

A: The net income is calculated as the difference between the contribution margin and fixed costs. The…

Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…

A: Profit is amount available after deduction of the fixed cost and variable cost from the sales and is…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Profit = Revenues - Expenses.

Q: You have the following data for product X: sales revenue $12,000, variable costs $8,000, allocated…

A: there are various product that are produced combined or in separate so these product whether they…

Q: Pepper Industries has three product lines, A, B, and C. The following information is available:…

A: There are multiple types of business costs. The three main costs are known as variable costs, fixed…

Q: XYZ Company is currently selling its single product for $15. Variable costs are estimated to remain…

A: Contribution margin ratio is calculated by dividing the contribution margin by the selling price.

Q: Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $36,000 as…

A: The contribution margin is calculated as the difference between sales and variable costs.With…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000…

A: Profit of the company can be calculated by deducting total costs that are variable costs and fixed…

Q: Spice Inc.'s unit selling price is $47, unit variable costs are $32, fixed costs are $106,000, and…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase…

A: The correct answer is :-  b. It will increase

Q: ach unit of Product X sells for $8 and has a contribution margin of $5. If Product X is…

A: The company produces 5000 units of Product X which contributes $ 5 per unit of contribution . If the…

Q: Spice Inc.'s unit selling price is $49, unit variable costs are $39, fixed costs are $120,000, and…

A: Contribution margin: The difference between the sales and the variable costs is called the…

Q: Jacob Arrell Corporation has sales revenue of $9,500,000. The company's fixed costs total…

A: There is ratio called combined leverage which is the ratio of % change in EPS with respect to %…

Q: DULTICO level of 100,000., profit would not change. What would happen to the company's profit if the…

A: 1. Variable Cost: It is a cost which varies with the change in the level of production. A per unit…

Q: Assuming that NUBD increased sales of Product X by 25 percent, what should the profit from Product X…

A: Solution: Contribution margin ratio = Contribution margin  / sales = (P300,000 - P240,000) /…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: Increase in profit = current contribution margin x increase in sales % = 450000 x 10% = $45000

Q: Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: Bramble Corp. plans to introduce a new product and is using the target cost approach. Projected…

A: DESIRED PROFIT    Desired profit per unit is Computed by Deducting Target Cost Per Unit From…

Q: Revenue from product X is $4,000. Total variable costs for product X are $2,500. The allocated fixed…

A: If a product is dropped then revenue from the product is lost, variable costs are saved and…

Q: XYZ Co. has a contribution margin of $450,000 and profit of $150,000. If sales increase 10%, by how…

A: 1. FIXED EXPENSES : = $450,000 - $150,000 = $300,000   2. NEW CONTRIBUTION MARGIN IF SALE INCREASE…

Q: Belowis an income statement for NUBD Company P400,000 (120.000) Contribution margin P280,000…

A: The net income is calculated as difference between sales revenue and total costs.

Q: Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000…

A: Avoidable fixed costs = fixed costs x (100%-42%) = $50,000 x 58% = $29,000

Q: Units produced and sold 150   300   Selling price per unit $400   $200   Variable expenses per…

A: Fixed costs are those costs which generally do not change with change in activity level. Variable…

Q: Brevard Industries produces two products. Information about the products is as follows: Units…

A: The decision for dropping a product line decreases the variable cost and traceable fixed cost but…

Q: Ajani Company has variable costs equal to 40% of sales. The company is considering a proposal that…

A: Variable costs on increased sales = Increase in sales x 40% = $10,000 x 40% = $4,000

Q: Sales 200,000 Variable expenses 140,000 Fixed expenses 100,000

A: Solution: Contribution margin lost = Sales - variable expense = 200000 - 140000 =60,000

Q: Ortega Interiors provides design services to residential and commercial clients. The residential…

A: Net income / (loss) is the amount of money earned or incurred after deducting the outlays from the…

Q: Davis Manufacturing current

A: Fixed costs are expenses that remain the same regardless of the level of production, while variable…

Q: please step by step solution.

A: The contribution margin is the revenue remaining after subtracting the variable costs that go into…

Q: A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50%…

A: Contribution margin :— It is calculated by multiplying contribution margin ratio with sales revenue.…