Unit sales Sales Less: cost of goods sold: Unit-level production costs Depreciation, production equipment Gross margin Less: operating expenses: Unit-level selling and administrative Corporate-level facility costs (fixed) Net income (loss) Unit sales Sales Less: cost of goods sold: Unit-level production costs Depreciation, production equipment Gross margin Less: operating expenses: Required: a. Compute the impact on profit if the Residential Division is eliminated. Unit-level selling and administrative Corporate-level facility costs (fixed) Net income (loss) Division 5,120 $406, 000 Commercial Division 175, 600 78,000 $152, 400 40, 600 15,500 $96,300 ➖➖➖➖➖➖ Division 1, 120 $106,000 60, 600 28,000 $17,400 10, 600 10,500 $(3,700)
Unit sales Sales Less: cost of goods sold: Unit-level production costs Depreciation, production equipment Gross margin Less: operating expenses: Unit-level selling and administrative Corporate-level facility costs (fixed) Net income (loss) Unit sales Sales Less: cost of goods sold: Unit-level production costs Depreciation, production equipment Gross margin Less: operating expenses: Required: a. Compute the impact on profit if the Residential Division is eliminated. Unit-level selling and administrative Corporate-level facility costs (fixed) Net income (loss) Division 5,120 $406, 000 Commercial Division 175, 600 78,000 $152, 400 40, 600 15,500 $96,300 ➖➖➖➖➖➖ Division 1, 120 $106,000 60, 600 28,000 $17,400 10, 600 10,500 $(3,700)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer do not image format
Transcribed Image Text:Unit sales
Sales
Less: cost of goods sold:
Unit-level production costs
Depreciation, production equipment.
Gross margin
Less: operating expenses:
Unit-level selling and administrative
Corporate-level facility costs (fixed)
Net income (loss)
Unit sales
Sales
Less: cost of goods sold:
Unit-level production costs
Depreciation, production equipment
Gross margin
Less: operating expenses:
Required:
a. Compute the impact on profit if the Residential Division is eliminated.
Unit-level selling and administrative
Corporate-level facility costs (fixed)
Net income (loss)
Division
5,120
$406, 000
Commercial
Division
175, 600
78,000
$152, 400
40, 600
15,500
$96, 300
Division
1, 120
$106, 000
60, 600
28,000
$17, 400
10, 600
10,500
$(3,700)
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