Requirements:1.Prepare a differential analysis to show whetherMovies are Bestshould drop the DVD product line.2.Will dropping DVDs add$44,000to operating income? Explain. Top managers of Movies are Best are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have preparethe following analysis to help make this decision:(Click the icon to view the analysis.)Total fixed costs will not change if the company stops selling DVDs.Read the requirements.Requirement 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line.Begin by preparing a differential analysis to show whether Movies are Best should drop the DVDs product line. (Enter decreases to profits with a parentheses orminus sign.)Expected decrease in revenues-Dropping DVDsExpected decrease in costs-Dropping DVDsExpectedin operating income Data tableNet Sales RevenueVariable CostsContribution MarginFixed Costs:ManufacturingSelling and AdministrativeTotal Fixed CostsOnorating Incoma (1 ona)$Total Blu-ray Discs DVD Discs309,000 $120,000155,00093,00027,000429,000 $248,000181,000131,00074,000205,000$ (24,000) $154,00077,00057,000134,00020,000 $54,00017,00071,000(44,000)

The differential analysis is performed to analyse the effect of various alternatives available to…

Answered: Requirements: 1. Prepare a…

Requirements: 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line. 2. Will dropping DVDs add $44,000 to operating income? Explain.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 9PA: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a...

See similar textbooks

Similar questions

the Victor Inc. as a custom because of COVID-19? 2. Please calculate the operating income(loss) if Scenario drop Victor Inc. as a custom. 3. Should Scenario keep Victor as a customer or just drop it? Why? Question 5: Please use an example to explain the opportunity-cost concept and why it is used in decision-making. tions: On DELL
The manager of Sunshine bakery is disappointed with the reported net income for the period. The bakery recorded a loss for the period. The manager does not understand how demand can be so high for baked goods but profits low. Suggest reasons why the bakery high demand may not lead to profit. Recommend the type of analysis that should be done to pinpoint the problem.
A) Use CVP analysis to recommend whether the move to paper packaging is a good business decision. Discuss any relevant qualitative factors relevant to the decision. Show all workings. B) The CEO of Primark wants to use your analysis from Part A to decide whether all Primark clothing lines should shift to paper packaging. Outline two reasons why this analysis does not give sufficient information for the CEO to make this decision.
after analyzing the skeletal profit and loss statement, a retailer is suffering a loss. list three ways and give examples of what they can do to turn the loss into profit. (Please explain)
Directions: For each situation, select one option you think will help increase profit. Put the letter of your choice in the blank. Below each answer, write your rationale. When you have finished, ask your instructor for a copy of the answer guide to verify your responses. A. Avoid extra payroll expenses. B. Get the best rates on advertising. C. Change the product you provide. D. Use resources wisely. E. Beat the competition. F. Get the best rates on supplier purchases. G. Eliminate some free services. H. Increase worker e iciency. _1. A shop that sells fine glassware offers gift wrapping at no extra cost. Rationale: 2. Two stores sell the same video game at the same price. Rationale: 3. There are 12 places to buy the yarn needed for a knitting factory. Rationale: 4. Employees at a printing company do not have a system for completing their tasks quickly and accurately. Rationale: 5. At a sign-making company, the extra metal is discarded. Rationale:
A manager in your organization just received a special order at a price that is “below cost.” The manager points to the document and says, “These are the kinds of orders that will get you in trouble. Every sale must bear its share of the full costs of running the business. If we sell below our full cost, we'll be out of business in no time.” What do you think of this remark?
Day Street Deli’s owner is disturbed by the poor profit performance of his ice cream counter.He has prepared the following profit analysis for the year just ended: he owner is thinking the elimination of this counter. If it is eliminated then: ✓ Depreciation of counter equipment is avoidable ✓ The supervisory salaries is avoidable✓ The insurance expense is unavoidable ✓ The depreciation of building unavoidable ✓ The general overhead is unavoidable Required:a) Should the company eliminate the counter or not? Show your calculations and justify your answer.b) Mention at least three relevant costs.
Prepare a report from Mary Jane to Don explaining how these changes will affect Mirabel’s overall cost structure. For those changes that are controllable, make a recommendation considering the uncontrollable cost changes. Be certain to consider not only the company’s break-even point, but also the desired margin of safety.
Walkin Inc. is considering the write-down of its longtermplant because of a lack of profitability. Explain tothe management of Walkin how to determine whether awrite-down is permitted.
All of the following should be considered in a make-or-buy decision excepta. quality issues with the supplierb. future growth in the plant and other production opportunitiesc. whether the supplier will make a profit that would no longer belong to the business d. cost savings
Please help answer attached question, thank you!
Ellie Ice-cream’s owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analyses for the year just ended: The owner is thinking the elimination of this counter. If it is eliminated then:  Depreciation of counter equipment is avoidable  The supervisory salaries is avoidable The insurance expense is unavoidable  The depreciation of building unavoidable  The general overhead is unavoidable Required:a) Should the company eliminate the counter or not? Fill in the table and justify your answer. b) Mention at least three relevant costs.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Business/Professional Ethics Directors/Executives…

Accounting

ISBN:

9781337485913

Author:

BROOKS

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Business/Professional Ethics Directors/Executives…

Accounting

ISBN:

9781337485913

Author:

BROOKS

Publisher:

Cengage

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

1.	Prepare a differential analysis to show whether Movies are Best should drop the DVD product line.
2.	Will dropping DVDs add $44,000 to operating income? Explain.

Requirements: 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line. 2. Will dropping DVDs add $44,000 to operating​ income? Explain.

Requirements: 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line. 2. Will dropping DVDs add $44,000 to operating income? Explain.