Security Alliance Product Line Contribution Margin Income Statement For the Year 4. Product lines Industrial Systems 2$ Household 5 6 Sales revenue 7 Less cost of goods sold: 8. Systems 380,000 $ Company Total 690,000 310,000 Variable Fixed 10 Gross profit 11 Less marketing and administrative expenses: Variable 32,000 280,000 (2,000) S 46,000 66,000 268,000 $ 78.000 346,000 266,000 9. 13 14 Operating income (loss) 15 12 Fixed 63,000 37,000 (102,000) $ 69,000 23,000 176,000 $ 132.000 60,000 74,000 Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $80,000 and decrease fixed marketing and adminis- trative expenses by $11,000.

Security Alliance Product Line Contribution Margin Income Statement For the Year 4. Product lines Industrial Systems 2$ Household 5 6 Sales revenue 7 Less cost of goods sold: 8. Systems 380,000 $ Company Total 690,000 310,000 Variable Fixed 10 Gross profit 11 Less marketing and administrative expenses: Variable 32,000 280,000 (2,000) S 46,000 66,000 268,000 $ 78.000 346,000 266,000 9. 13 14 Operating income (loss) 15 12 Fixed 63,000 37,000 (102,000) $ 69,000 23,000 176,000 $ 132.000 60,000 74,000 Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $80,000 and decrease fixed marketing and adminis- trative expenses by $11,000.

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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