Homework Answers
| Loss in Contribution margin of product | -40000 |
| Fixed costs avoidable | 4000 |
| Additional Contribution margin | 6000 |
| Net change in income | -30000 |
| Option C $30,000 decrease is correct |
Add Answer to:
The managers of Riverside Designs are considering dropping one of their product lines. The product line...
Discontinue? Chapter 8: Dropping a product line The managers at Manchester's Department Store are concerned about...
Discontinue?
Chapter 8: Dropping a product line The managers at Manchester's Department Store are concerned about the operation of its sporting goods department, which has not been very successful. The following condensed income statement gives the latest year's results: Manchester Department Store Contribution Margin Income Statement For the Year Ended December 31 Product Lines Sporting Goods $480,000 $385,000 $95,000 All Other Departments $2,400,000 $1,560,000 $840,000 Totals Sales Revenue $2,880,000 $1.945,000 $935,000 Less: Variable Costs: Contribution Margin Less: Fixed Costs Manufacturing...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Movies and More can avoid $37,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movies and More should stop selling...
Top managers of pennsylvania Flooring are alarmed by their operating losses. They are considering dropping the...
Top managers of pennsylvania Flooring are alarmed by their
operating losses. They are considering dropping the laminate
flooring product line. Company accountants have prepared the
following analysis to help make this decision:
Total fixed costs will not change if the company stops selling
laminate flooring
.
0 Requirements 1. Prepare an incremental analysis to show whether Pennsylvania Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $33,000 to operating income? Explain. 2. Assume that the company...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: E (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDS. Requirements Data Table 1. Prepare a differential analysis to show whether Movies and More should drop the DVD product line. 2. Will dropping DVDS add $39,000 to operating...
Top managers of Rhode Island Flooring are alarmed by their operating losses. They are considering dropping...
Top managers of Rhode Island Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision: E(Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring. Read the requirements. Requirement 1. Prepare an incremental analysis to show whether Rhode Island Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add...
Top managers of Movie Street are alarmed by their operating losses. They are considering dropping the...
Top managers of Movie Street are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Movie Street can avoid $36,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movie Street should stop selling DVDs. (Enter decreases...
Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the...
Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Video Avenue can avoid $39,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Video Avenue should stop selling DVDs. (Enter decreases...
Top managers of California Flooring are alarmed by their operating losses. They are considering dropping the...
Top managers of California Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision (Click the icon to view the analysis.) Total fixed costs will not change it the company stops selling laminate flooring. Read the resuirements in an inpul box if there is no Requirement 1. Prepare an incremental analysis to show whether California Flooring should discontinue the laminate flooring product...
Top managers of Best Video are alarmed by their operating losses. They are considering dropping the...
Top managers of Best Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: E (Click the icon to view the analysis.) Assume that Best Video can avoid $45,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Best Video should stop selling DVDS. (Enter...
Exercise 4-49 (Static) Dropping Product Lines (LO 4-4) Cotrone Beverages makes energy drinks in three flavors:...
Exercise 4-49 (Static) Dropping Product Lines (LO 4-4) Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 20 percent. Segmented income statements appear as...
Discontinue?
Chapter 8: Dropping a product line The managers at Manchester's Department Store are concerned about the operation of its sporting goods department, which has not been very successful. The following condensed income statement gives the latest year's results: Manchester Department Store Contribution Margin Income Statement For the Year Ended December 31 Product Lines Sporting Goods $480,000 $385,000 $95,000 All Other Departments $2,400,000 $1,560,000 $840,000 Totals Sales Revenue $2,880,000 $1.945,000 $935,000 Less: Variable Costs: Contribution Margin Less: Fixed Costs Manufacturing...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Movies and More can avoid $37,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movies and More should stop selling...
Top managers of pennsylvania Flooring are alarmed by their
operating losses. They are considering dropping the laminate
flooring product line. Company accountants have prepared the
following analysis to help make this decision:
Total fixed costs will not change if the company stops selling
laminate flooring
.
0 Requirements 1. Prepare an incremental analysis to show whether Pennsylvania Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $33,000 to operating income? Explain. 2. Assume that the company...
Top managers of Movies and More are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: E (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDS. Requirements Data Table 1. Prepare a differential analysis to show whether Movies and More should drop the DVD product line. 2. Will dropping DVDS add $39,000 to operating...
Top managers of Rhode Island Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision: E(Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring. Read the requirements. Requirement 1. Prepare an incremental analysis to show whether Rhode Island Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add...
Top managers of Movie Street are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Movie Street can avoid $36,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movie Street should stop selling DVDs. (Enter decreases...
Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Video Avenue can avoid $39,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Video Avenue should stop selling DVDs. (Enter decreases...
Top managers of California Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision (Click the icon to view the analysis.) Total fixed costs will not change it the company stops selling laminate flooring. Read the resuirements in an inpul box if there is no Requirement 1. Prepare an incremental analysis to show whether California Flooring should discontinue the laminate flooring product...
Top managers of Best Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: E (Click the icon to view the analysis.) Assume that Best Video can avoid $45,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Best Video should stop selling DVDS. (Enter...
Exercise 4-49 (Static) Dropping Product Lines (LO 4-4) Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 20 percent. Segmented income statements appear as...
Most questions answered within 3 hours.
-
Explain traveling wave theory. Explain how the peaking of the
wave leads to action potentials and...
asked 7 minutes ago -
If you mixed 35.0 mLmL of 0.100 M Tris-HCl with 65.0
mLmL of 0.200 M Tris-base, what would...
asked 4 minutes ago -
Which force do you think wields a stronger influence over our
ethical behavior – our personal...
asked 10 minutes ago -
11.1 In the northeast
regions of the United States and in eastern Canada, many people
heat their...
asked 9 minutes ago -
What is the entropy change to the surroundings when 1 mol of ice
melts in someone's...
asked 10 minutes ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 15 minutes ago -
Pt1
An electrochemical cell is set up at 25°C based on the overall
reaction represented by...
asked 16 minutes ago -
Bruin, Inc., has identified the following two mutually
exclusive projects:
Year
Cash Flow (A)
Cash...
asked 18 minutes ago -
A mutual fund salesperson has arranged to call on four people
tomorrow. Based on past experience...
asked 22 minutes ago -
The decomposition of SO2Cl2 is first order
and has a rate constant of + 2.90 x...
asked 44 minutes ago -
A solid, frictionless cylindrical reel of mass M=5.00kg and
radius R=0.55m is used to draw water...
asked 1 hour ago -
The work done by the spring's restoring force
on the free end of a spring while...
asked 38 minutes ago