Question 11 Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Laptops Phones Revenue Variable Costs Traceable Fixed Costs Allocated Fixed Costs $530 $245 $300 $110 Total Per Unit $(125) Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. $1099 $430 $209 $130 $330 If Appel Inc. sells 1,401 units of phones and 689 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Round your answer to the nearest dollar.
Question 11 Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Laptops Phones Revenue Variable Costs Traceable Fixed Costs Allocated Fixed Costs $530 $245 $300 $110 Total Per Unit $(125) Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. $1099 $430 $209 $130 $330 If Appel Inc. sells 1,401 units of phones and 689 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Round your answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Question 11
Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone
segment to improve their net operating income. Data for each per unit is as follows:
Laptops
Phones
Revenue
Variable Costs
Traceable Fixed Costs
Allocated Fixed Costs
$530
$245
$300
$110
Total Per Unit
$(125)
Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of
traceable fixed costs can be avoided.
$1099
$430
$209
$130
$330
If Appel Inc. sells 1,401 units of phones and 689 units of laptops, how much will their net operating
income increase/decrease if the phone segment is dropped?
Round your answer to the nearest dollar.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education