Increase (Decrease) in net income of total company if Hard rubber division is dropped
= Avoidable fixed cost - Contribution margin lost
= 22,000 - 7,000
= 15,000 increase
Total net income after if the line is dropped
= 110,000 + 15,000
= 125,000
Louisville Knock-Offs produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented...
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17. Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales Contribution margin Fixed expenses Net income (loss) S 65,000 $765,000 Variable expenses 325.000 140,000 000 23,000 242,000 22,000132,000 (15.000) S110.000 500,000 $200,000 175,000 75,000 35.000 60,000 7,000 S100,000$25.000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the...
Question 20 4 pts Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Total $763,000 Wood $500,000 Aluminum Hard Rubber $63,000 $200,000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) 140,000 325,000 58,000 523,000 175,000 75,000 $100,000 60,000 35,000 $25,000 5,000 20,000 $(15,000) 240,000 130,000 $110,000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net...
Sunland Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood Aluminum Hard Rubber Total Sales $470000 $170000 $65000 $705000 Variable expenses 310000 110000 58000 478000 Contribution margin 160000 60000 7000 227000 Fixed expenses 75000 35000 22000 132000 Net income (loss) $85000 $ 25000 $(15000) $95000 Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the...
Justin Industries produces
three versions of tires: Supreme, Advanced, and Basic. A condensed
segmented income statement for a recent period follows:Assume all
of the fixed expenses for the hard rubber line are avoidable. What
will be total net income if the line is dropped?A)
$250,000B)$206,000C)$210,000D) $280,00044. Which of the following
costs are variable?A) 1 and 2B)1 and 4C)only 1D) only 2Page
10SupremeAdvancedBasicTotalSales$1,000,000$400,000$130,000$1,530,000Variable
expenses 650,000 280,000 116,000 1,046,000Contribution
margin350,000120,00014,000484,000Fixed expenses 150,000 70,000
44,000 264,000Net income (loss)$200,000$
50,000$(30,000)$220,000
43. Justin Industries produces...