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 $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 8PA: Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to...

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ps://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Flms.mheducati... A ☆ Homework Problems i Fixed costs: Occupancy costs Salaries Other Variable costs (including cost of paint) Rainbow Paints operates a chain of retail paint stores. Although the paint is sold under the Rainbow label, it is purchased from an independent paint manufacturer. Guy Walker, president of Rainbow Paints, is studying the advisability of opening another store. His estimates of monthly costs for the proposed location are as follows. a. Contribution margin ratio Break-even sales volume in dollars Break-even sales volume in gallons c. Operating income for 2,200 Gallons Operating income for 2,600 Gallons % Saved $ 3,160 3,640 1,200 $ Ch
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