Tushar Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:SalesVariable expensesFixed manufacturing expensesFixed selling and administrative expenses$ 830,000$ 416,000$ 266,000$ 214,000All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation hasrevealed that $204,000 of the fixed manufacturing expenses and $119,000 of the fixed selling and administrative expenses areavoidable if product D14E is discontinued.Required:a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should beindicated by a minus sign.)b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?a. Net operating income (loss)b. Financial advantage (disadvantage)The productdropped

Suire Corporation - Product D14E Analysisa. Net Operating Income (Loss)Based on the company's…

Answered: Suire Corporation is considering…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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The management of M Corporation has been concerned for some time with the financial performance of its product I54J and has considered discontinuing it on several occasions. Data from the company's accounting system appear below: Sales $ 650,000 Variable Expenses $ 293,000 Fixed manufacturing expense $ 221,000 Fixed selling and administrative expense $ 150,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $95,000 of the fixed manufacturing expenses and $85,000 of the fixed selling and administrative expenses are avoidable if product I54J is discontinued. According to the company's accounting system, what is the net operating income earned by product I54J? A. $14,000 B. ($357,000) C. ($14,000) D. $357,000
The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 807,500 $ 419,500 $274,400 $ 234,200 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $194,000 of the fixed manufacturing expenses and $168,200 of the fixed selling and administrative expenses are avoidable if product B900 is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Not operating income (loss) would by it product B90D were dropped Therefore, the product dropped Show All Items
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $ 927,000 $ 407,500 $ 341,000 $ 248,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $209,500 of the fixed manufacturing expenses and $120,500 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product D74F? Multiple Choice $189,500 ($69,500)
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 933,000 Variable expenses $ 410,500 Fixed manufacturing expenses $ 347,000 Fixed selling and administrative expenses $ 254,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $212,500 of the fixed manufacturing expenses and $123,500 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product D74F?
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales Variable expenses $ 937,000 $ 416,000 $ 351,000 Fixed manufacturing expenses Fixed selling and administrative expenses $ 258,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $218,000 of the fixed manufacturing expenses and $129,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation-whether relevant or not. $88,000 ($521,000) ($88,000) $521,000
Need help with a practice question from the last unit
11q15
Cornell Enterprises currently produces several products. Model L78 is showing a net operating loss as indicated by the following condensed income statement prepared for the year ended December 31. You have been hired by Cornell Enterprises to help analyze the decision as to whether to eliminate Model L78. Upon investigation, you discover that if Model L78 is eliminated, $20,000 of the fixed costs shown on the above condensed income statement can be eliminated. The rest of the fixed costs allocated to Model L78 are common fixed costs that will be allocated to the remaining two products produced by Cornell Enterprises. Determine if Cornell Enterprises should discontinue Model L78.
Sphinxco Manufacturing Company had a computer malfunction that destroyed some of its accounting records. Sales Finished goods inventory, January 1, 2025 Finished goods inventory, December 31, 2025 Cost of goods sold Gross margin Selling and administrative expenses Operating income Work in process, January 1, 2025 Direct materials used Direct labor Factory overhead Total manufacturing costs Work in process, December 31, 2025 Cost of goods manufactured Required: Calculate the unknowns Indicated by question marks. Case A $ 150,000 Case B ? 35,000 40,000 $ 28,000 ? ? 61,000 25,000 23,000 ? 1,000 10,000 22,000 ? 14,000 18,000 8,000 35,000 9,000 50,000 ? ? 35,000 22,000 ? ? 45,000
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. For Year Ended December 31 Acoustic Electric Sales $ 102,200 $ 84,000 Cost of goods sold 43,975 47,550 Gross profit 58,225 36,450 Expenses Advertising 4,995 4,290 Depreciation—Equipment 10,100 8,570 Salaries 20,200 17,300 Supplies used 1,990 1,770 Rent 7,035 5,950 Utilities 2,975 2,640 Total expenses 47,295 40,520 Income (loss) $ 10,930 $ (4,070)
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 102,500 44,575 57,925 4,985 10,120 19,400 2,010 7,095 3,015 46,625 $ 11,300 Electric $ 84,600 47,350 37,250 4,300 8,600 17,000 1,750 5,976 2,610 41,010 $ (3,780) 1. Prepare a departmental contribution to overhead report 2. Based on contribution to overhead, should the electric guitar department be eliminated?
Hi, Kindly assist in solving the attached question on ACC653 Advanced Managerial Accounting. thank you!

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