Continue Fruit cola (Alternative 1) | Discontinue Fruit cola (Alternative 2) | Differential Effect on Income (Alternative 2) | |
Revenues | 234400 | 0 | -234400 |
Costs: | |||
Variable cost of goods sold | -96800 | 0 | 96800 |
Variable operating expenses | -109340 | 0 | 109340 |
Fixed costs | -45860 | -45860 | 0 |
Income (Loss) | -17600 | -45860 | -28260 |
Workings: | |||
Variable cost of goods sold | =110000*(1-12%) | ||
Variable operating expenses | =142000*(1-23%) | ||
Fixed costs | =(110000*12%)+(142000*23%) | ||
Alternatively costs can be written without a minus sign |
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $236,900 112,000 Cost of goods sold Gross profit $124,900 Operating expenses 142,000 $(17,100) Loss from operations It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 22% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed Income statement by product line for Healthy Beverage Inc, indicated the following for Fruit Cola for the past year Sales $232,400 Cost of goods sold 110,000 $122,400 Gross profit Operating expenses 143,000 Loss from operations $(20,600) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: $237,800 Sales Cost of goods sold 108,000 Gross profit $129,800 Operating expenses 143,000 Loss from operations $(13,200) It is estimated that 16% of the cost of goods sold represents fixed factory overhead costs and that 20% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $236,000 Cost of goods sold 108,000 Gross profit $128,000 Operating expenses 146,000 Loss from operations $(18,000) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $233,800 Cost of goods sold 109,000 Gross profit $124,800 Operating expenses 146,000 Loss from operations $(21,200) It is estimated that 13% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales Cost of goods sold Gross profit $235,200 111,000 Operating expenses $124,200 144,000 $(19,800) Loss from operations It is estimated that 14% of the cost of goods sold represents fixed factory overhead costs and that 18% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $234,900 Cost of goods sold 109,000 Gross profit $125,900 Operating expenses 143,000 Loss from operations $(17,100) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 21% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed...
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past yeat: Sales Cost of goods sold Gross profit Operating expenses Loss from operations It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially...
Differential Analysisfor a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $234,600 Cost of goods sold 112,000 Gross profit $122,600 Operating expenses 145,000 Loss from operations $(22,400) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 23% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs...
Differential Analysis for a Discontinued Product A condensed income statement by product line for British Beverage Inc. indicated the following for King Cola for the past Sales Cost of goods sold $234,600 109,000 $125,600 142,000 Gross profit Operating expenses Loss from operations $(16,400) It is estimated that 12% of the cost of goods sold represents fixed factory overhead costs and that 22% of the operating expenses are fixed. Since King Cola is only one of many pre costs and that...