Prepare a differential cost schedule b. Should Cotrone drop the Strawberry product line?

Q: Harrow, Inc. is currently selling 153,000 units of its product at $18 per unit, with variable costs…

A: Increase in sales ( In units ) = 153,000 units x 7% = 10,710 units  Contribution per unit = $18 -$9…

Q: Applying Differential Analysis to Alternative Profit Scenarios Epson produces color cartridges for…

A: The question is related to Profit Anaysis under two situation. We will prepare income Statement…

Q: The following information is available for Division X of Weingarten Enterprises:   Selling price…

A: Note: As per general rule, in the case of sufficient capacity available, the minimum transfer price…

Q: Naumann Corporation produces and sells a single product. Data concerning that product appear below.…

A: In the marginal costing income statement net income is computed by deducting total fixed cost from…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000…

A: The correct option is:- It will Increase .d

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: Segmented income statements appear as follows:   Product Original   Strawberry   Orange Sales $…

A: A differential cost schedule is prepared in order to determine the difference in cost if one…

Q: Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone…

A: ANSWER Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone…

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 financial advantage (disadvantage) of eliminating the Diet line is:   a. ($795,000)   b.…

A: Unavoidable fixed costs are the costs that cannot be avoided irrespective of the continuation or…

Q: Because Lanisha Motors operates in a very competitive environment, it is essential for the…

A: The number of units that must be sold to cover both variable and fixed costs must be ascertained in…

Q: a- What is the breakeven quantity for this product using graphical method. b- What is the marginal…

A:

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: If Carolina can avoid all the fixed costs allocated to any segment when such segment is dropped,…

A: Concept When making a product drop decision the impact upon total income shall be looked upon If the…

Q: Carolina Enterprise operates three product segments: sinks, bathtubs, and toilet bowls. Below are…

A:

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: The Furniture Company currently has three divisions: Maple, Oak, and Cherry. The oak furniture line…

A: The discontinuity of a segment of the business can be evaluated by measuring the various elements…

Q: Supreme Ltd. Which manufactures the component EXCEL, has achieved a turnover of $ 6,00,000 for the…

A: .

Q: Product Sales Variable costs Contribution margin Fixed costs allocated to each product line…

A: Differential cost is the cost, which is defined as the difference among the cost of two alternative…

Q: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…

A: When determining whether or not to stop producing a product, you should take into account not only…

Q: Marchete Company produces a single product. They have recently received the results of a market…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: Wildhorse, Inc. makes computer bags that sell for $30 each. For the coming year, management expects…

A: The revenue level at which a business isn't really profitable is known as break-even sales. This…

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: Marin Company makes several products, including canoes. The company reports a loss from its canoe…

A: The Company has suffered loss in canoe segment as given. The Variable cost are avoidable and fixed…

Q: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…

A: Differential cost is the cost, which is defined as the difference among the cost of two alternative…

Q: Refer to the information for Petoskey Company from Exercise 8-44. Assume that 20% of theAlanson…

A: Contribution margin is the excess of sales revenue over variable costs in the business. Operating…

Q: Quality Chairs Incorporated (QC) manufactures chairs for industrial use. Laura Winters, the Vice…

A: Budgets are being made for estimations made for future period. Budgeted numbers are compared with…

Q: implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase…

A: The correct answer is :-  b. It will increase

Q: a. Compute the CM ratio and breakeven points in dollars. b. Compute the operating leverage at last…

A: ANSWER: First let us metion the given values in question relating to product A of last year: Sales…

Q: mework i A ant Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green…

A: The differential analysis is performed to compare the different alternatives available to the…

Q: Wrobbel Corporation produces and sells a single product. Data concerning that product appear below:…

A: Net operating income is the income of the company that has raised due to the business function of…

Q: Iakisthike, LLC has two lines of products, Regular and Super, and is thinking about discontinuing…

A: Total fixed manufacturing cost = [$140,000 - (7,000 x $18)] + [$375,000 - (3,000 x $109)] = $62,000…

Q: Break-even (in units) fill in the blank 1 Break-even (in dollars) $fill in the blank 2

A: In accounting, the break-even point is calculated by dividing the fixed costs of production by the…

Q: Units produced and sold 150   300   Selling price per unit $400   $200   Variable expenses per…

A: Fixed costs are those costs which generally do not change with change in activity level. Variable…

Q: Brevard Industries produces two products. Information about the products is as follows: Units…

A: The decision for dropping a product line decreases the variable cost and traceable fixed cost but…

Q: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…

A: The cost differential between two options is known as the differential cost. Different options have…

Q: Recent economic conflitions are forcing MegaCorp to drop its price from $50 to $40 per unit, but the…

A: Honor Code:As per the Honor Code, I can only address one question at a time.As you haven't specified…

Q: Ortega Interiors provides design services to residential and commercial clients. The residential…

A: Net income / (loss) is the amount of money earned or incurred after deducting the outlays from the…

Q: Davis Manufacturing current

A: Fixed costs are expenses that remain the same regardless of the level of production, while variable…

Q: FunTime Company produces three lines of greeting cards: scented, musical, and regular.Segmented…

A: Income Statement  The income statement is defined as the financial statement that explains the…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.