Answer 1)
Income Statement- Present Situation (Given in the question)
Particulars |
Total |
Product A |
Product B |
Sales |
$ 182,620 |
$ 91,610 |
$ 91,010 |
Variable Costs |
$ 104,075 |
$ 49,469 |
$ 54,606 |
Contribution Margin |
$ 78,545 |
$ 42,141 |
$ 36,404 |
Fixed Costs: |
|||
Avoidable |
$ 60,610 |
$ 35,880 |
$ 24,730 |
Unavoidable |
$ 35,090 |
$ 28,090 |
$ 7,000 |
Profit |
-$ 17,155 |
-$ 21,829 |
$ 4,674 |
Income Statement- If Product A is discontinued
Particulars |
Total |
Product A |
Product B |
Sales |
$ 91,010 |
0 |
$ 91,010 |
Variable Costs |
$ 54,606 |
0 |
$ 54,606 |
Contribution Margin |
$ 36,404 |
0 |
$ 36,404 |
Fixed Costs: |
|||
Avoidable |
$ 24,730 |
0 |
$ 24,730 |
Unavoidable |
$ 35,090 |
$ 28,090 |
$ 7,000 |
Profit |
-$ 23,416 |
-$ 28,090 |
$ 4,674 |
If product A is discontinued, X Company will earn a profit of -$23,416.
Notes:
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Total $180,770 106,654 $74,116 Product A $93,510 55,171 $38,339 Product B $87,260 51,483 $35,777 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 64,440 36,580 $-26,904 42,130 29,990 $-33,781 29.990 22,310 6,590 $6,877 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will...
The following income statement is for X Company and its only two products - A and B: Total $180,770 106,654 $74,116 Product A $93,510 55,171 $38,339 Product B $87,260 51,483 $35,777 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 64,440 36,580 $-26,904 42,130 29,990 $-33,781 22,310 6,590 $6,877 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: A Product Product Total B Sales $172,820 $87,580 $85,240 Variable 95,950 49,921_46,030 Costs Contribution $76,870 $37,659 $39,210 margin Fixed costs: Avoidable 58,570 24,910 33,660 Unavoidable 35,100 5,500 29,600 Profit $-16,800 $7,249 $-24,050 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be H...
The following income statement is for X Company and its only two products - A and B: Product Product Total A B Sales $185,980 $91,190 $94,790 Variable 110,676 53,802_56,874 Costs Contribution $75,304 $37,388 $37,916 margin Fixed costs: Avoidable 51,720 22,570 29,150 Unavoidable 34,150 2,960 26,190 Profit $-10,566 $6,858 $-17,424 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be (Submit...
The following income statement is for X Company and its only two products - A and B: Total Sales Variable Costs Contribution margin Fixed costs: Avoidable $182,590 103,152 $79,438 Product A $91,530 49,426 $42,104 Product B $91,060 53,725 $37,335 Unavoidable 67,380 34,920 $-22,862 43,490 29,540 $-30,926 23,890 5,380 $8,065 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Total $179,170 103,818 $75,352 Product A $87,070 52.242 $34,828 Product B $92,100 51,576 $40,524 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 68,530 32.590 $-25,768 22,710 6.730 $5,388 45,820 25,860 $-31,156 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Total $182,590 103,152 $79,438 Product A $91,530 49,426 $42,104 Product B $91,060 53,725 $37,335 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 67,380 34,920 $-22,862 43,490 29,540 $-30,926 23,890 5,380 $8,065 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $180,560 $87,730 $92,830 Variable Costs 98,584 44,742 53,841 Contribution margin $81,976 $42,988 $38,989 Fixed costs: Avoidable 63,950 41,480 22,470 Unavoidable 35,550 29,920 5,630 Profit $-17,524 $-28,412 $10,889 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $181,000. $88,150. $92,850 Variable Costs. 100,384 50,245 50,139 Contribution margin $80,616 $37,905. $42,711 Fixed costs: Avoidable 64,830 24,440 40,390 Unavoidable 33,960 6,470 27,490 Profit $-18,174. $6,995 $-25,169 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will...