The condensed income statement for Coastal Manufacturing for the past year is presented as follows: Product Sales A Variable Cost $300,000 $180,000 Contribution Margin Fixed Cost Income (Loss) From Operation $120,000 $50,000 $70,000 B $250,000 $220,000 $30,000 $40,000 $(10,000) C $400,000 $260,000 $140,000 $60,000 $80,000 Total $950,000 $660,000 $290,000 $150,000 $140,000 Management is considering discontinuing Product B at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or the sales of Products A and C. What is the amount of change in net income for the current year that will result from the discontinuance of Product B? a. $10,000 decrease b. $30,000 increase c. $30,000 decrease d. $10,000 increase e. None of the listed responses is correct

The condensed income statement for Coastal Manufacturing for the past year is presented as follows: Product Sales A Variable Cost $300,000 $180,000 Contribution Margin Fixed Cost Income (Loss) From Operation $120,000 $50,000 $70,000 B $250,000 $220,000 $30,000 $40,000 $(10,000) C $400,000 $260,000 $140,000 $60,000 $80,000 Total $950,000 $660,000 $290,000 $150,000 $140,000 Management is considering discontinuing Product B at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or the sales of Products A and C. What is the amount of change in net income for the current year that will result from the discontinuance of Product B? a. $10,000 decrease b. $30,000 increase c. $30,000 decrease d. $10,000 increase e. None of the listed responses is correct

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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LL Required Information The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: $ 2,300,00e 670,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income 000'09 Average operating assets $1,437,500 At the beginning of this year, the company has a $287,500 investment opportunity with the following cost and revenue characteristics: Sales Contribution margin ratio Fixed expenses S0% of sales $ 161,000 The company's minimum required rate of return is 15%. 5. What is the turnover related to this year's investment opportunity? (Round your answer to 1 decimal place.) e here to search 近。 F4 F5 F7 F8 F10 F11 て2 24 4 % 9 08.
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