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 $922,000 Variable expenses $401,000 Fixed manufacturing expenses Fixed selling and administrative expenses $336,000 $243,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203.000 of the fixed manufacturing expenses and $114,000 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. Multiple Choice $58,000 (S521,000) (S58.000) $521000
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 $922,000 Variable expenses $401,000 Fixed manufacturing expenses Fixed selling and administrative expenses $336,000 $243,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203.000 of the fixed manufacturing expenses and $114,000 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. Multiple Choice $58,000 (S521,000) (S58.000) $521000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11q15
Transcribed Image Text: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
$922,000
$401,000
$336,000
$243,000
Variable expenses
Fixed manufacturing expenses
Fixed selling and administrative expenses
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $203.000 of the fixed manufacturing expenses and $114,000 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.
Multiple Choice
$58,000
(S521,000)
(S58,000)
$521,000
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