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 < Required A Income Increase (Decrease) Required B >

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 < Required A Income Increase (Decrease) Required B >

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 $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? Required A Required B Complete this question by entering your answers in the tabs below. $ 980,000 700,000 280,000 340,000 $ (60,000) Segment Elimination Analysis Compute the income increase or decrease from eliminating this segment. Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue $ 0 Eliminate 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 $342,500 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,146,600 Variable costs 819,000 Contribution margin 327,600 Fixed costs 391,000 Income (loss) $ (63,400) (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 $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
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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
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
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 ()
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Cornell Enterprises currently produces several products. Model L78 is showing a net operating loss as indicated by the following condensed income statement prepared for the year ended December 31. You have been hired by Cornell Enterprises to help analyze the decision as to whether to eliminate Model L78. Upon investigation, you discover that if Model L78 is eliminated, $20,000 of the fixed costs shown on the above condensed income statement can be eliminated. The rest of the fixed costs allocated to Model L78 are common fixed costs that will be allocated to the remaining two products produced by Cornell Enterprises. Determine if Cornell Enterprises should discontinue Model L78.
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 ()
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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)