1. Incremental Analysis- Discontinued Industrial System | |
Particular | Amount |
Contribution Margin lost (340000-35000-69000) |
$236,000 |
Less: saving due to reduction Fixed cost ($83000+ 15,000) | $98,000 |
Operating Income | $138,000 |
2. Contribution Margin income Statement | |||
Particular |
Total (A-B) |
Without Industrial System | Difference (A-B) |
Sales Revenue | $710,000 | $370,000 | $340,000 |
Variable Expenses: | |||
Cost of Goods Sold | $78,000 | $43,000 | $35,000 |
Marketing and administrative expense | $139,000 | $70,000 | $69,000 |
Total Variable expenses | $217,000 | $113,000 | $104,000 |
Contribution Margin | $493,000 | $257,000 | $236,000 |
Fixed Expenses: | |||
Cost of Goods Sold | $314,000 | $231,000 | $83,000 |
Marketing and administrative expense | $67,000 | $52,000 | $15,000 |
Total Fixed Expenses | $381,000 | $283,000 | $98,000 |
Operating Income (loss) | $112,000 | ($26,000) | $138,000 |
The operating income difference calculated on the total analysis of discontinuing a product line equal the expected decrease in operating income if Security discontinues the industrial system product line.
helpp operating income i Requirements - X venue Sold Prepare a differential analysis to show whether...
Members of the board of directors of Security System have received the following operating income data for the year ended May 31, 2018: E(Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $81,000 and decrease fixed selling...
Members of the board are surprised that the industrial systems product line is now profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed costs of good sold by $81,000 and decrease fixed selling and administrative expenses by $15,000. Requirements - X Prepare a differential analysis to show whether Security First should drop the industrial systems product line. Prepare contribution margin income statements to show Security...
1. Prepare an incremental analysis to show whether Security FirstSecurity First should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show Security First's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. What have you learned from this comparison? Company accountants estimate that discontinuing the industrial systems line will decrease fixed...
Question 3: Members of the board of directors of Control One have received the following operating income data for the year ended May 31, 2014 Product Line Industrial Household Systems Systems Total Sales Revenue 340.000 $ 390,000 $ 730 000 Cost of Goods Sold Variable 39,000 43.000 82,000 200 000 63.000 323.000 Fixed Total Cost of Goods Sold 299,000 106,000 405,000 Gross Profit 41,000 284,000 325,000 Selling and Administrative Expenses Variable 86.000 74,000 140,000 40.000 Fixed 28.000 68,000 Total Selling...
Members of the board of directors of Security Team have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fond cost of goods sold by $81,000 and decrease fored marketing...
I need help for the below Members of the board of directors of Control One have received the following operating Income data for the year ended May 31. 2014: Members of the board are surprised that the Industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses...
Members of the board of directors of Security Team have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fond cost of goods sold by $81,000 and decrease fored marketing...
Members of the board of directors of Safety Point have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will de fixed cost of goods sold by $80,000 and decrease fixed selling...
Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $63.000 and decrease fund marketing and administrative expenses by 5,000 Members of the board of directors of Security Systems have received the following operating income data for the year just ended Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission wady to determine whether the company...
Score: 0 z0 of 1 pl 70 % 56K/s P25-23A (similar to) Members of the board of directors of Safety Point have recelved the following operating income data for the year ended May 31, 2018 (Cick the icon to view the operating income data) Members of the board are surprised that the industrial systems product line is not profitable They commission a study to determine whether the company should drop the ine Company accountants estimate that dropping industria systems will...