Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All itsvariable costs are avoidable, and $300,000 of its fixed costs are avoidable.Segment Income (Loss)SalesVariable costsContribution marginFixed costsIncome (loss)(a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be continued or eliminated?Required A Required BComplete this question by entering your answers in the tabs below.$ 980,000700,000280,000340,000$ (60,000)Segment Elimination AnalysisCompute the income increase or decrease from eliminating this segment.Income Increase(Decrease)SalesVariable costsContribution marginFixed costsIncome (loss)Continue$0Eliminate0 $< Required A00$Required B0>

In evaluating, whether continue to invest or not in a division, the company should calculate the…

Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $300,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B $ 980,000 700,000 280,000 340,000 $ (60,000) Compute the income increase or decrease from eliminating this segment. Income Increase (Decrease) Segment Elimination Analysis Sales Variable costs Contribution margin Fixed costs Income (loss) Continue $ 0 Eliminate 0 $ 0 0 $ 0 ||

Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $300,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B $ 980,000 700,000 280,000 340,000 $ (60,000) Compute the income increase or decrease from eliminating this segment. Income Increase (Decrease) Segment Elimination Analysis Sales Variable costs Contribution margin Fixed costs Income (loss) Continue $ 0 Eliminate 0 $ 0 0 $ 0 ||

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $345,000 of its fixed costs are avoidable. Segment Income (Loss). Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Q A Z Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income (loss) :: FI 2 W S -0% $ 1,156,400 826,000 330,400 394,000 $ (63,600) F2 3 E D Continue 80 F3 MAR 29 G 10 of 11 n tv 6 F6 Y & 7 H « F7 Nex> U 8 DII J FB DD 9 XCVBNM F9 K A O F10 0 P
Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?
Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097,600 784,000 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Required A Required B 313,600 376,000 $ (62,400) Complete this question by entering your answers in the tabs below. Income (loss) Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate
A manufacturer is considering eliminating a segment because it shows the following $6,300 loss. All $21,100 of its variable costs are avoidable, and $38,500 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A $ 63,300 21,100 42,200 48,500 (6,300) Required B Compute the incomo
A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs are avoidable, and $39,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 63,900 21,300 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? 42,600 49,000 (6,400) Complete this question by entering your answers in the tabs below. Segment Elimination Analysis Sales Variable costs Contribution margin Required A Required B Compute the income increase or decrease from eliminating this segment. Fixed costs Income (loss) Continue S $ 63,900 21,300 42,600 49,000 (6,400) Eliminate
Central Industries has three product lines: A, B, and C. The information given below is available. Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C Pand does not replace it. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48.000 42,000 18,000 9,000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 $(1.700) increase by $600 increase by $1,700 decrease by S6,000 decrease by S9,000 () increase by $2,400 ()
The following information is for X Company's two products - A and B: Sales Total contribution margin Fixed costs: Submit Angus Tres 012 Tring Avoidable Unavoidable Profit Product A $93,000 39,990 21,000 5,000 $13,990 Product B $92,000 36,800 26,500 30,000 $-19,700 The company is considering dropping Product B because of the $19,700 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $16,000. If X Company drops Product B and increases sales of A, firm profits will change by
Central Industries has three product lines: A, B, and C. The information given below is available. Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C ?and does not replace it. What will happen to operating income Sales Variable costs Contribution margin. Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76.000 24,000 9,000 6.000 $9.000 Product B S90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1.700) increase by $600 increase by S1,700 () decrease by S6,000 decrease by S9,000 ) increase by S2,400 ()
Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango. Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom) Keep Discontinue Revenue 1 of 7 2 of 7 VC - 3 of 7 - Question Blank 4 of 7 CM = Question Blank 5 of 7 = Question Blank 6 of 7 (Keep is the more profitable decision, Both are equally profitable, or Discontinuation is the more profitable situation)
Carolina Enterprise operates three product segments: sinks, bathtubs, and toilet bowls. Below are the figures showing how each product segment performed in 2022. If Carolina can avoid all the fixed costs allocated to any segment when such segment is dropped, should the sink segment be dropped? Sales Variable costs Contribution margin Fixed costs Net operating income Sinks P450,000 (220,000) 230,000 (250,000) P(20,000) Bathtubs P520,000 (315,000) 205,000 (180,000) P25,000 Toilet Bowls P480,000 (280,000 200,000 (140,000 P60,000 Yes, because dropping the sink segment will cause Carolina's total net operating income to increase by P30,000. No, because dropping the sink segment will cause Carolina's total net operating income to decrease by P20,000. Yes, because dropping the sink segment will cause Carolina's total net operating income to increase by P20,000. No, because dropping the sink segment will cause Carolina's total net operating income to decrease by P30,000.
Product B has revenue of $39,500, variable cost of goods sold of $25,500, variableselling expenses of $16,500, and fixed costs of $15,000, creating a loss from operationsof $17,500. Prepare and show in solution a differential analysis as of May 9 todetermine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.