Increase or decrease in the operating income in 2014. Given information: 2014, Cost of goods sold of A is 440,000. Cost of goods sold of B is 930,000. Selling, general and administrative expense of A is $96,000. Selling, general and administrative expense of B is $202,500. Percentage of cost of goods sold of A is 90%. Percentage of cost of goods sold of B is 80%. Percentage of Selling, general and administrative expense of A is 50%. Percentage of Selling, general and administrative expense of A is 50%. Saving on the fixed cost is 40%.

Question

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Answer 1

Question

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

2.

To determine

Increase or decrease in the operating income.

3.

To determine

To identify: factor which should be considered before taking the decision of division.

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Answer 2

Question

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

2.

To determine

Increase or decrease in the operating income.

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

2.

To determine

Increase or decrease in the operating income.

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

2.

To determine

Increase or decrease in the operating income.

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

2.

To determine

Increase or decrease in the operating income.

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Answer 6

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

Answer 7

Chapter 11, Problem 11.41P

1.

To determine

Increase or decrease in the operating income in 2014.

Given information:

2014,

Cost of goods sold of A is 440,000.

Cost of goods sold of B is 930,000.

Selling, general and administrative expense of A is $96,000.

Selling, general and administrative expense of B is $202,500.

Percentage of cost of goods sold of A is 90%.

Percentage of cost of goods sold of B is 80%.

Percentage of Selling, general and administrative expense of A is 50%.

Percentage of Selling, general and administrative expense of A is 50%.

Saving on the fixed cost is 40%.

Answer 8

2.

To determine

Increase or decrease in the operating income.

Answer 9

2.

To determine

Increase or decrease in the operating income.

Answer 10

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Answer 11

3.

To determine

To identify: factor which should be considered before taking the decision of division.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11 - Prob. 11.1Q Ch. 11 - Define relevant costs. Why are historical costs...Ch. 11 - All future costs are relevant. Do you agree? Why?Ch. 11 - Distinguish between quantitative and qualitative...Ch. 11 - Describe two potential problems that should be...Ch. 11 - Variable costs are always relevant, and fixed...Ch. 11 - A component part should be purchased whenever the...Ch. 11 - Prob. 11.8Q Ch. 11 - Managers should always buy inventory in quantities...Ch. 11 - Management should always maximize sales of the...

Increase or decrease in the operating income.

To identify: factor which should be considered before taking the decision of division.

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