Homework Answers
Operating income for Luxury=$135,500
Less:Unavoidable fixed costs for Sporty line=($39500-$22000)=($17500)
Total net operating income would be=$118,000
Hence increase in operating income
=$118,000-$106,000
=$12,000.
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Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...
31 Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for...
31
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 365,000 125,000 80,000 $45,000 Luxury $360,000 245,000 115,000 40,000 $75,000 Sporty $130,000 120,000 10,000 40,000 $(30,000) If $20,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? O A. Decrease $30,000 O B. Increase $15,000 OC. Increase $10,000...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $510,000 355,000 155,000 76,000 $79.000 Luxury $380,000 $235,000 145,000 38,000 $107.000 Sporty $130,000 120,000 10,000 38.000 $(28,000) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be...
how to solve ? Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for...
how to solve ?
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Total Luxury Sporty Sales revenue $490,000 $360,000 $130,000 Variable expenses 356,000 235,000 121,000 Contribution margin 134,000 125,000 9,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $58,000 $87,000 $(29,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $49,000 OB. Decrease in total...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recen...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 359,000 131,000 76,000 $55,000 Luxury $360,000 235.000 125.000 38,000 $87,000 Sporty $130,000 124.000 6.000 38,000 $(32,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $130,000 OB. Decrease in total operating income of $131,000...
14 Boots Plus has two product lines: Hiking boots and Fashion boots Income statement data for...
14 Boots Plus has two product lines: Hiking boots and Fashion boots Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Totall $500,000 365.000 135,000 79.000 $56.000 Hiking $360,000 245.000 115,000 39.500 $75,500 Fashion $140,000 120.000 20.000 39.500 -$19.500 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income...
Is it A, B, C, or D Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the...
Is
it A, B, C, or D
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $49,000 $67,000 ($18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Increase $5,000 Increase $18,000 Decrease...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year fo...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 395,000 105,000 76,000 $29,000 Hiking $360,000 275,000 85,000 38,000 $47.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $65,000 OB. Increase $36,000 OC. Increase $5,000 OD. Decrease...
Powder, Inc. has two product lines snow skis and water skis. The income statement data for...
Powder, Inc. has two product lines snow skis and water skis. The income statement data for the most recent year is as follows: Total Snow skis Water skis Sales revenue $980,000 $650,000 $330,000 Variable costs (425,000) (175,000) (250,000) Contribution margin $555,000 $475,000 $80,000 Fixed costs (185,000) (80,000) (105,000) Operating income (loss) $370,000 $395,000 $(25,000) Question: What is the effect of dropping the water skis line on the operating income of the company assuming no changes in fixed costs? Operating income...
Boots Plus has two product lines. Hiking boots and Fashion boots Income statement data for the most recent year fol...
Boots Plus has two product lines. Hiking boots and Fashion boots Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $480,000 360,000 120,000 76.000 $44,000 Hiking $340,000 235,000 105,000 38,000 $67,000 Fashion $140,000 125,000 15,000 38,000 $(23,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? O A. Decrease in total operating income of $15,000 OB. Decrease in total operating income of $140,000...
The income statement for Lovely Locks is divided by its two product lines, Curling Irons and...
The income statement for Lovely Locks is divided by its two product lines, Curling Irons and Straighteners, as follows: Curling Irons Straighteners Total Sales revenue $650,000 $260,000 $910,000 Variable expenses $490,000 $210,000 $700,000 Contribution margin $160,000 $50,000 $210,000 Fixed expenses $90,000 $90,000 $180,000 Operating income (loss) $70,000 -$40,000 $30,000 If Lovely Locks can eliminate fixed costs of $33,000 and increase the sale of Curling Irons by 6500 units at a selling price of $33 per unit and a contribution...
31
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 365,000 125,000 80,000 $45,000 Luxury $360,000 245,000 115,000 40,000 $75,000 Sporty $130,000 120,000 10,000 40,000 $(30,000) If $20,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected? O A. Decrease $30,000 O B. Increase $15,000 OC. Increase $10,000...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $510,000 355,000 155,000 76,000 $79.000 Luxury $380,000 $235,000 145,000 38,000 $107.000 Sporty $130,000 120,000 10,000 38.000 $(28,000) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be...
how to solve ?
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Total Luxury Sporty Sales revenue $490,000 $360,000 $130,000 Variable expenses 356,000 235,000 121,000 Contribution margin 134,000 125,000 9,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $58,000 $87,000 $(29,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $49,000 OB. Decrease in total...
Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $490,000 359,000 131,000 76,000 $55,000 Luxury $360,000 235.000 125.000 38,000 $87,000 Sporty $130,000 124.000 6.000 38,000 $(32,000) Assuming fixed costs remain unchanged, how would discontinuing the Sporty line affect operating income? O A. Increase in total operating income of $130,000 OB. Decrease in total operating income of $131,000...
14 Boots Plus has two product lines: Hiking boots and Fashion boots Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Totall $500,000 365.000 135,000 79.000 $56.000 Hiking $360,000 245.000 115,000 39.500 $75,500 Fashion $140,000 120.000 20.000 39.500 -$19.500 Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $28,000 per year, how will operating income...
Is
it A, B, C, or D
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow Total Hiking Fashion Sales revenue $480,000 $340,000 $140,000 Variable expenses 355,000 235,000 120,000 Contribution margin 125,000 105,000 20,000 Fixed expenses 76,000 38,000 38,000 Operating income (loss) $49,000 $67,000 ($18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? Increase $5,000 Increase $18,000 Decrease...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow. Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $500,000 395,000 105,000 76,000 $29,000 Hiking $360,000 275,000 85,000 38,000 $47.000 Fashion $140,000 120,000 20,000 38,000 $(18,000) If $25,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected? O A. Increase $65,000 OB. Increase $36,000 OC. Increase $5,000 OD. Decrease...
Boots Plus has two product lines. Hiking boots and Fashion boots Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $480,000 360,000 120,000 76.000 $44,000 Hiking $340,000 235,000 105,000 38,000 $67,000 Fashion $140,000 125,000 15,000 38,000 $(23,000) Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income? O A. Decrease in total operating income of $15,000 OB. Decrease in total operating income of $140,000...
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