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Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments, Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 83,000 51,000 120,000 Contribution margin $77,000 $58,000 $89,000 Direct fixed costs 50,000 20,000 25,000 Allocated common fixed costs 31,000 25,000 31,000 $(4,000) $13,000 $32,000 Net income If costumes are dropped, whatchange will occur to profit? Profit will by $

Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments, Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 83,000 51,000 120,000 Contribution margin $77,000 $58,000 $89,000 Direct fixed costs 50,000 20,000 25,000 Allocated common fixed costs 31,000 25,000 31,000 $(4,000) $13,000 $32,000 Net income If costumes are dropped, whatchange will occur to profit? Profit will by $

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter25: Segment Income Statement (dept)
Section: Chapter Questions
Problem 4R
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1/1 - CengageNOWv2 | Online teachin X enow.com/ilrn/takeAssignment/takeAssignmentMa.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 83,000 51,000 120,000 Contribution margin $77,000 $58,000 $89,000 Direct fixed costs 50,000 20,000 25,000 Allocated common fixed costs 31,000 25,000 31,000 $(4,000) $13,000 $32,000 Net income If costumes are dropped, whahchange will occur to profit? Profit will by $ Next
Transcribed Image Text:1/1 - CengageNOWv2 | Online teachin X enow.com/ilrn/takeAssignment/takeAssignmentMa.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false Party Supply is trying to decide whether or not to continue its costume segment. The information shown is available for Party Supply's business segments. Assume that neither the Direct fixed costs nor the Allocated common fixed costs may be eliminated, but will be allocated to the two remaining segments. Party Floral Costumes Supplies Decorations Sales $160,000 $109,000 $209,000 Variable costs 83,000 51,000 120,000 Contribution margin $77,000 $58,000 $89,000 Direct fixed costs 50,000 20,000 25,000 Allocated common fixed costs 31,000 25,000 31,000 $(4,000) $13,000 $32,000 Net income If costumes are dropped, whahchange will occur to profit? Profit will by $ Next
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