The following information is available on Crain Co.'s two product line: Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Operating income (loss) Chairs $24,000 $18,000 $28,800 $13,200 $180,000 (96,000) 84,000 (36,000) (18,000) $30,000 Tables $48,000 (30,000) 18000 (12,000) (10,800) ($4,800) Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for $24,000 per year, operating income will increase by what amount?
The following information is available on Crain Co.'s two product line: Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Operating income (loss) Chairs $24,000 $18,000 $28,800 $13,200 $180,000 (96,000) 84,000 (36,000) (18,000) $30,000 Tables $48,000 (30,000) 18000 (12,000) (10,800) ($4,800) Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for $24,000 per year, operating income will increase by what amount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following information is available on Crain Co.'s two product line:
Sales
Variable costs
Contribution margin
Fixed costs:
Avoidable
Unavoidable
Operating income (loss)
$24,000
$18,000
Chairs
O $28,800
$13,200
$180,000
(96,000)
84,000
Tables
$30,000
$48,000
(30,000)
18000
(36,000) (12,000)
(18,000)
(10,800)
Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for $24,000 per year,
operating income will increase by what amount?
($4,800)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95aeff90-eae1-41d1-a6d5-24c543733ee7%2Fc9bcd117-97b0-4d9c-946f-d4a49e424911%2Fl97i7uf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is available on Crain Co.'s two product line:
Sales
Variable costs
Contribution margin
Fixed costs:
Avoidable
Unavoidable
Operating income (loss)
$24,000
$18,000
Chairs
O $28,800
$13,200
$180,000
(96,000)
84,000
Tables
$30,000
$48,000
(30,000)
18000
(36,000) (12,000)
(18,000)
(10,800)
Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for $24,000 per year,
operating income will increase by what amount?
($4,800)
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