Kahn Corporation (a multi-product company) produces and sells 8,000 units of Product X each year. Each unit of Product X sells for $10 and has a contribution margin of $6. If Product X is discontinued, $50,000 of the $60,000 in annual fixed costs charged to Product X could be eliminated. The annual financial advantage (disadvantage) for the company of eliminating this product should be:

Q: Sammy Company is considering eliminating its commercial division. The company allocates fixed costs…

A: The operating profit refers to the income that is earned by the company from running its main…

Q: Coronado Machines has four product lines, one of which reflects the following results: Sales…

A: Avoidable fixed costs = Total Fixed costs x 40% = 111000 x 40% = $44,400

Q: Valdez Company is considering eliminating its kitchen division, which reported an operating loss of…

A: When a company decides to drop the segment some costs are avoidable and some are unavoidable. The…

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: Nytre Limited sells executive office chairs for a price of $195 each. The contribution margin ratio…

A: The targeted sales are calculated as sum of fixed cost and target profit divided by contribution…

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: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: Fritz Furniture currently manufactures two unprofitable products: a couch and a chair. Yearly…

A: Couch ChairFixed Expenses (A)$190,000$138,000Traceable Percent of Total Fixed costs…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…

A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…

Q: Mullis Corporation manufactures DVDs that sell for $5.20. Fixed costs are $35,000 and variable costs…

A: The break-even point is the point at which a company is a neither profitable nor losing money. At…

Q: how much loss would the company recognize on its income statement?

A: Given: Selling Price = S = $71 Variable Costs = V = $43 Fixed costs = $24,000

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: The manufacturer of a product that has a variable cost of $2.50 per unit and total fixed cost of…

A: The break-even point (BEP) appears to be an accounting term that refers to the point where a…

Q: The manufacturer of a product that has a variable cost of $2.60 per unit and total fixed cost of…

A: 1. To break even, the total cost must equal the total revenue. The unit contribution margin is the…

Q: XYZ company currently sells 15,000 units a month for $50 each, has variable costs of $20 per unit,…

A: Contribution margin is the price of the product deduct all the linked variable costs, results from…

Q: Give true answer

A: Step 1: Introduction to CVP AnalysisCVP analysis, or cost-volume-profit analysis, is a management…

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: I want to answer this question

A: Step 1: Introduction to the Break Even Analysis Break-even analysis enables the firms to determine…

Q: Ram Co. is trying to decide whether or not to discontinue one of its products, slow cookers. Last…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Munoz Company currently produces and sells 7,400 units annually of a produ costs of $270,400. The…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: The objective of the question is to calculate the revised contribution margin ratio if Forrester…

Q: Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Need answer

A: Explanation of Break Even Analysis:Break-even analysis is a financial tool used to determine the…

Q: A company has three product lines, one of which has the following results: Sales $214000 Variable…

A: Income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: Wildhorse Inc. manufactures golf clubs in three models. For the year, the Penny Worth line has a net…

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

Q: Bran Corporation plans to discontinue a division that generates a total contribution margin of…

A: Differential analysis in cost accounting involves comparing the relevant costs and revenues of…