Homework Answers
Total profit decrease by $10,000.
.
.If segment is discontinued there will be zero revenue and variable costs. Contribution margin will become zero as well.
The direct fixed cost will not incur but the common fixed cost will still be there.
The segment margin that is earned right now will be lost which is $10,000.
This $ 10,000 will be the actual loss due to discontinuation.
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Blowing Sand Company produces the Drafty model fan, which currently has a net loss of $50,000...
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show all work please! i cant figure out the ones in the blanks but how do...
show all work please! i cant figure out the ones in the blanks but
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Regular
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$15,000
$25,000
$50,000
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7,000
12,000
12,500
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Contribution margin
$ 3,000
$ 3,000
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5,000
3,000
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Segment margin
$ (1,000)
$ (2,000)
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$ 6,500
Less: Common fixed expenses
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Operating income (loss)
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Chapter 7 Assignment i Saved 10 Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal. 10 points Mohave's information related to the Sand Trap line is shown below. eBook Segmented Income Statement for Mohave's Sand...
show all work please! i cant figure out the ones in the blanks but
how do you get values for the the common fixed costs and the net
operating income (loss)?
Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the...
FunTime Company produces three lines of greeting cards: scented,
musical, and regular. Segmented income statements for the past year
are as follows:
Scented
Musical
Regular
Total
Sales
$ 10,000
$15,000
$25,000
$50,000
Less: Variable expenses
7,000
12,000
12,500
31,500
Contribution margin
$ 3,000
$ 3,000
$12,500
$18,500
Less: Direct fixed expenses
4,000
5,000
3,000
12,000
Segment margin
$ (1,000)
$ (2,000)
$ 9,500
$ 6,500
Less: Common fixed expenses
7,500
Operating income (loss)
$(1,000)
Kathy Bunker, president of FunTime, is...
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