A study has been conducted to determine if one of the departments in Larry's Electronics should...
A study has been conducted to determine if one of the departments in Larry's Electronics should be discontinued. The contribution margin in the department is $50,000 per year. Fixed expenses charged to the department are $65,000 per year. It is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. If the department is discontinued, what would be the annual change in the company's overall net operating?
Homework Answers
| Loss in Contribution margin | -50000 |
| Avoidable Fixed expenses | 40000 |
| Change in company's overall net operating income | -10000 |
| Decrease in company's overall net operating income = $10000 | |
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A study has been conducted to determine if one of the
departments in Larry's Electronics should...
A study has been conducted to determine if one of the departments in GE should be...
A study has been conducted to determine if one of the departments in GE should be discontinued. The contribution margin in the department is $50,000 per year. Fixed expenses charged to the department are $65,000 per year. It is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. Discontinuing this product would result in a $120,000 increase in the contribution margin of other product lines. If the department is discontinued, what would be the...
A study has been conducted to determine if one of the departments in Parry Company should...
A study has been conducted to determine if one of the departments in Parry Company should be discontinued. The contribution margin in the department is $50,000 per year. Fixed expenses charged to the department are $65,000 per year. It is estimated that $40,000 of these fixed expenses could be eliminated if the department is discontinued. These data indicate that if the department were discontinued, the company's overall operating income per year would change by how much? Multiple Choice An increase...
QUESTION 14 Product Q is currently sold at £20 per unit, and variable costs are 60%...
QUESTION 14 Product Q is currently sold at £20 per unit, and variable costs are 60% of the selling price. If the current breakeven point is 12,000 units, the price which must be set to breakeven at 10,000 units is: A. £16.67 B. £21.60 C. £29.60 OD. £24.00 QUESTION 15 Auckland Limited sells plastic baskets. For the next year Auckland is planning to sell 5,400 baskets at a price of £40 per basket. The company is planning to achieve a...
A study has been conducted to determine if Product A should be dropped. Sales of the...
A study has been conducted to determine if Product A should be dropped. Sales of the product total $242,000 per year, variable expenses total $169,400 per year. Fixed expenses charged to the product total $108,900 per year. The company estimates that $48,400 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would
A study has been conducted to determine if Product A should be dropped. Sales of the...
A study has been conducted to determine if Product A should be dropped. Sales of the product total $224,000 per year; variable expenses total $156,800 per year. Fixed expenses charged to the product total $100,800 per year. The company estimates that $44,800 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:
Managerial Accounting Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most...
Managerial Accounting
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows Department Total Hardware Linens Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $4,320,000 $ 3,140,000 $ 1,180,000 420,000 760,000 810,000 1,273,000e 3,047,000 2, 287,000 2,150,000 1, 340,000 853,000 $ 897,000 $ 947,000 $(50,000) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,230,000
$
3,050,000
$
1,180,000
Variable expenses
1,258,000
839,000
419,000
Contribution margin
2,972,000
2,211,000
761,000
Fixed expenses
2,250,000
1,440,000
810,000
Net operating income (loss)
$
722,000
$
771,000
$
(49,000
)
A study indicates that $371,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Department Total Hardware Linens $4,260,000 $3,160,000 $1,100,000 1,229,000 825,000 404,000 Sales Variable expenses Contribution margin Fixed expenses 3,031,000 2,210,000 2,335,000 1,320,000 696,000 890,000 Net operating income (loss) $ 821,000 $1,015,000 $ (194,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,230,000 1,227.000 3,003.000 2,270,000 $ 733,000 Department Hardware Linens $3,170,000 $ 1,060,000 811,000 416,000 2,359,000 644.000 1,430,000 840,000 $929.000 $ (196,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,270,000 1,403,000 2.867,000 2,360,000 $ 507.000 Department Hardware Linens $3,190,000 $ 1,080,000 998,000 405,000 2,192,000 675.000 1,490,000 870,000 $ 702,000 $ (195,000) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even...
QUESTION 14 Product Q is currently sold at £20 per unit, and variable costs are 60% of the selling price. If the current breakeven point is 12,000 units, the price which must be set to breakeven at 10,000 units is: A. £16.67 B. £21.60 C. £29.60 OD. £24.00 QUESTION 15 Auckland Limited sells plastic baskets. For the next year Auckland is planning to sell 5,400 baskets at a price of £40 per basket. The company is planning to achieve a...
A study has been conducted to determine if Product A should be dropped. Sales of the product total $242,000 per year, variable expenses total $169,400 per year. Fixed expenses charged to the product total $108,900 per year. The company estimates that $48,400 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would
Managerial Accounting
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows Department Total Hardware Linens Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $4,320,000 $ 3,140,000 $ 1,180,000 420,000 760,000 810,000 1,273,000e 3,047,000 2, 287,000 2,150,000 1, 340,000 853,000 $ 897,000 $ 947,000 $(50,000) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
Bed & Bath, a retailing company, has two
departments—Hardware and Linens. The company’s most recent monthly
contribution format income statement follows:
Department
Total
Hardware
Linens
Sales
$
4,230,000
$
3,050,000
$
1,180,000
Variable expenses
1,258,000
839,000
419,000
Contribution margin
2,972,000
2,211,000
761,000
Fixed expenses
2,250,000
1,440,000
810,000
Net operating income (loss)
$
722,000
$
771,000
$
(49,000
)
A study indicates that $371,000 of the fixed expenses being
charged to Linens are sunk costs or allocated costs that will
continue...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Department Total Hardware Linens $4,260,000 $3,160,000 $1,100,000 1,229,000 825,000 404,000 Sales Variable expenses Contribution margin Fixed expenses 3,031,000 2,210,000 2,335,000 1,320,000 696,000 890,000 Net operating income (loss) $ 821,000 $1,015,000 $ (194,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,230,000 1,227.000 3,003.000 2,270,000 $ 733,000 Department Hardware Linens $3,170,000 $ 1,060,000 811,000 416,000 2,359,000 644.000 1,430,000 840,000 $929.000 $ (196,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if...
Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,270,000 1,403,000 2.867,000 2,360,000 $ 507.000 Department Hardware Linens $3,190,000 $ 1,080,000 998,000 405,000 2,192,000 675.000 1,490,000 870,000 $ 702,000 $ (195,000) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even...
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