Sales Variable expenses: Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line). Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager i Insurance on inventories Purchasing department Total fixed expenses Net operating loss *Common costs allocated on the basis of machine-hours. +Common costs allocated on the basis of sales dollars. $ 125,000 48,000 13,000 28,000 108,000 42,000 113,000 13,000 57,000 $ 460,000 Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump? 186,000 274,000 361,000 $ (87,000) Discontinuing the bilge pump would not affect sales of other product lines and would have no effect on the company's total gen- factory overhead or total Purchasing Department expenses.

Sales Variable expenses: Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line). Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager i Insurance on inventories Purchasing department Total fixed expenses Net operating loss *Common costs allocated on the basis of machine-hours. +Common costs allocated on the basis of sales dollars. $ 125,000 48,000 13,000 28,000 108,000 42,000 113,000 13,000 57,000 $ 460,000 Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump? 186,000 274,000 361,000 $ (87,000) Discontinuing the bilge pump would not affect sales of other product lines and would have no effect on the company's total gen- factory overhead or total Purchasing Department expenses.

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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2.Question 5 pts Sees Corp., a merchandising company, reported the following results for July. Cost of Goods Sold 276,213 Fixed selling and administrative expense 55,665 Sales Revenue 541,967 ar sign or the calculat Variable selling and administrative expense 56,728 This question is independent of all other questions. Please use only the information in this question to calculate the answer. Based on the information provided above, calculate the Contribution Margin for July. Cost of Goods Sold is a variable cost in this company. Enter only the amount of the Contribution Margin in the box provided below. Enter the amount only. Do not enter letters, words, or the calculation. ministrativ THHE ning A or gaitas vd s on il grinismoy sal 10 nudi zaol at zinvonis visas worla of 313 Loy 15 of gollesio 30 enoilointantis wel
YouTube O Maps Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of operations ending October 31, Marshall Inc. estimated the following operating results: Sales (27,200 x $96) $2,611,200 Manufacturing costs (27,200 units): Direct materials 1,572,160 Direct labor 372,640 Variable factory overhead 174,080 Fixed factory overhead 206,720 Fixed selling and administrative expenses 56,200 Variable selling and administrative expenses 68,000 The company is evaluating a proposal to manufacture 30,400 units instead of 27,200 units, thus creating an ending inventory of 3,200 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses. a. 1. Prepare an estimated income statement, comparing operating results if 27,200 and 30,400 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it…
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