Rings Company three product lines A, B, and C. The following financial information is available: TB MC Qu. 11-71 (Algo) Pre-tax operating income for the firm: Rings CompanyRings Company has three product lines, A, B, and C. The following financial information is available:Product Line A$ 68,000$ 40,800$ 27,200ItemSalesVariable costsContribution marginFixed costs:AvoidableUnavoidableProduct Line B$ 140,000$ 75,000$ 65,000$ 6,200$4,900$ 16,100Product Line C$ 31,000$ 19,375$ 11,625$ 18,500$ 14,000$ 32,500Pre-tax operating incomeRings is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pretax operating income for the firm will likely:Help$8,700$ 3,900$ (975)Save & ExitSubmit

Contribution margin takes into consideration Variable costs while operating income takes into…

TB MC Qu. 11-71 (Algo) Pre-tax operating income for the firm: Rings Company Rings Company has three product lines, A, B, and C. The following financial information is available: Product Line A $ 68,000 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable $ 40,800 $ 27,200 Product Line B $ 140,000 $75,000 $ 65,000 $ 6,200 $ 4,900 $ 16,100 Saved $ 18,500 $ 14,000 $ 32,500 Product Line C $ 31,000 $19,375 $ 11,625 $8,700 $3,900 $ (975) Pre-tax operating income Rings is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pretax operating income for the firm will likely. Help Save & Exit Submi

TB MC Qu. 11-71 (Algo) Pre-tax operating income for the firm: Rings Company Rings Company has three product lines, A, B, and C. The following financial information is available: Product Line A $ 68,000 Item Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable $ 40,800 $ 27,200 Product Line B $ 140,000 $75,000 $ 65,000 $ 6,200 $ 4,900 $ 16,100 Saved $ 18,500 $ 14,000 $ 32,500 Product Line C $ 31,000 $19,375 $ 11,625 $8,700 $3,900 $ (975) Pre-tax operating income Rings is thinking of dropping Product Line C because it is reporting an operating loss. Assuming the company drops Product Line C and does not replace it, pretax operating income for the firm will likely. Help Save & Exit Submi

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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