not sure if you have to put cost also in negative sign or not.. I have used positive sign for cost..
Continue | Eliminate | Net income increase/(Decrease) | ||||
Sales | 480000 | 0 | -480000 | |||
Variable cost | ||||||
Cost of goods sold | 400000*80% | 320000 | 0 | -320000 | ||
operating expenes | 140000*70% | 98000 | 0 | -98000 | ||
Total variable cost | 418000 | 0 | -418000 | |||
contribution margin | 62000 | 0 | -62000 | |||
fixed cost | ||||||
Cost of goods sold | 400000*20% | 80000 | 80000 | 0 | ||
operating expenes | 140000*30% | 42000 | 27000 | -15000 | ||
Net profit / (loss) | -60000 | -107000 | -47000 |
CALCULATOR PRINTER VERSION 4 BACK NEXT Exercise 199 (Part Level Submission) A recent accounting graduate from...
Exercise 199 (Part Level Submission) A recent accounting graduate from Marvel State University evaluated the operating performance of Fanning Company's four divisions. The following presentation was made to Fanning's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $60,000. (See analysis below.) Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income Other Three Divisions $ 2,000,000 950,000 1,050,000 800,000 $ 250,000 Southern Division...
Exercise 199 (Part Level Submission) A recent accounting graduate from Marvel State University evaluated thee operating performance of Fanning Company's four divisions. The following presentation was made to Fanning's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $60,000. (See analysis below.) Southern Division Total Other Three Divisions $ 2,000,000 $480,000 $2,480,000 Sales 1,350,000 950,000 400,000 Cost of Goods Sold B0,000 1,130,000 1,050,000 Gross Profit...
Practice Assignment Gadebuok ORION Downloadable eTextbook nment CALCULATOR FULL SCREEN PRINTER VERSION NEXT BACK Exercise 20-3 Your answer is partially correct. Try again. Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 $935,000 Net income Cost of goods sold was 70% variable and 30 % fixed ; operating expenses...
CALCULATOR ALL SCREEN PRINTER VERSION BACK NEX Exercise 20-15 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. If the Percy Division is eliminated," she said, our total profits would increase by $26,100. Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,663,000 $100,900 977,300 76,800...
CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 20-6 Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,000 Tri-Robos is as follows. Direct materials ($50 per robot) Direct labor ($40 per robot) Variable overhead ($6 per robot) Allocated fixed overhead ($30 per robot) Total Cost $1,000,000 800,000 120,000 600,000 $2,520,000 Jobs is approached...
A recent accounting graduate from Lethbridge University evaluated the operating performance of Fane Company's three divisions. The following presentation was made to Fane’s Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by $20,000, as shown in the analysis below. Other Two Divisions Southern Division Total Sales $1,000,000 $300,000 $1,300,000 Cost of Goods Sold 650,000 200,000 850,000 Gross Profit 350,000 100,000 450,000 Operating Expenses 100,000 120,000 220,000 Net Income $ 250,000 $...
Exercise 20-15 Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,600." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,664,000 $100,000 978,000 76,900 686,000 23,100 526,300 49,700 $159,700 $ (26,600)...
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated' she said. "our total profits would increase by $27,200." Total Sales Cost of goods sold The Other The Other Percy Five Divisions Division $1,665,000 $100,100 977.400 76,900 687,600 23,200 528,700 50,400 $158,900 $(27,200) Gross profit $1,765,100 1,054,300 710,800 579,100...
Exercise 7-15 (Video) Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisions. Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,600." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,664,000 $100,500 978,500 76,700 685,500 23,800 527,500 50,400 $158,000 $...
Exercise 20-15 (Video) Ruth Lewis, a recent graduate of Bell's accounting program, evaluated the operating performance of Sunland Company's six divisions. Ruth made the following presentation to Sunland's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,100." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,664,000 $100,300 977,900 76,300 686,100 24,000 528,000 50,100 $158,100 $...