Q.15 Sheridan company produces three versions of baseball bats: wood, aluminum, and hard rubber…. Sheridan Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented incomestatement for a recent period follows:SalesVariable expensesContribution marginFixed expensesNet income (loss)Wood$65000$55000$43000O$190000$44000032500011500075000$40000Aluminum Hard Rubber$65000$2500001900006000035000$ 2500058000700022000$(15000)Total$755000573000182000132000$50000Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

Since Fixed costs are not avoidable, even the Hard rubber segment is dropped.Total costs should…

Sheridan Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Sales Variable expenses Contribution margin Fixed expenses Net income (loss) Wood $440000 O $65000 O$55000 $43000 O$190000 325000 115000 75000 $40000 Aluminum Hard Rubber $250000 190000 60000 35000 $ 25000 $65000 58000 7000 22000 $(15000) Total $755000 573000 182000 132000 $50000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

Sheridan Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Sales Variable expenses Contribution margin Fixed expenses Net income (loss) Wood $440000 O $65000 O$55000 $43000 O$190000 325000 115000 75000 $40000 Aluminum Hard Rubber $250000 190000 60000 35000 $ 25000 $65000 58000 7000 22000 $(15000) Total $755000 573000 182000 132000 $50000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped?

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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