b. Should Cotrone drop the Strawberry product line? YesNo Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberryflavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, thecompany's total fixed costs would be reduced by 15 percent.Segmented income statements appear as follows:ProductSalesVariable costsIIIOriginal$32,40022,680$ 9,7204,600$ 5,120Strawberry$43,10038,790$ 4,3106,200$(1,890)Orange$50,90040,720$10,1806,900$ 3,280Contribution marginFixed costs allocated to each product lineOperating profit (loss)Required:a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select"none" if there is no effect.)Alternative:Status QuoDropStrawberryDifferenceRevenueLess: Variable costsContribution marginLess: Fixed costsOperating profit (loss)

Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Alternative: Status Quo Drop Strawberry Difference Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss)

Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Alternative: Status Quo Drop Strawberry Difference Revenue Less: Variable costs Contribution margin Less: Fixed costs Operating profit (loss)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When performing sales mix analysis, which one of the following is true: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product. O c. The sales mix is usually assumed to change. O d. Making changes to the sales mix will likely cause no change in the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin DUS PAGE NEXT PAGE F8 F9 F10 F11 F4 F5 F6 F7 F1 F2 F3 * @ 2# % & 1 2 3 6 7 W E T Y F J K A 1. C {V }BYN í M 41 * N
Answer question 20 and 21
When dealing with Make or Buy - we have several alternatives that could be possible. Like with any problem associated with relevant decision making, we have to list all of our alternatives side by side and choose the best one. Yet, as we've discussed, there are items that are important that can be non-financial. For instance, if a series of alternatives suggests we should drop a product line because the numbers say it'd be a good move, do we just do it? What about the political fall out? The loss of jobs? All of these things need to be weighed when making these all to complicated decisions.
Q3
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Pete consumes goods 1 and 2. Pete thinks that 3 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Pete's preferences? A B с D E U (x₁,x₂) = 40x₁+30x - 10000 1 2 U (x₁,x₂) = 4x₁+3x₂+ 1000 1 2 U(x,x) = min(4x, 3x₂) U (x₁,x₂) = 16x² + 24x x₂ + 9x² 12 More than one of the above does not represent Pete's preferences.
pl answer all the three
Part 1: Use the Value per Products Description bar chart.1. Which product has the highest profit value?2. What is the profit value for the product with the highest profit value?3. Do any of the products have a negative profit value (the company is losing money on them)?4. If there are products with a negative profit value, which products are those?5. Do you think the company should keep selling the “Shirt Girls (pink)” product? Why or whynot?