1.Incremental Analysis:
Contribution Margin lost = $42,000
Less: Fixed cost savings = $0
Operating Income DECREASE if laminate flooring is dropped = $42,000
2. Incremental Analysis:
Contribution Margin lost = $42,000
Less: Fixed cost savings = $33,000
Operating Income DECREASE if laminate flooring is dropped = $9,000
3. Incremental Analysis:
Contribution Margin lost on laminate flooring= $42,000
Contribution margin lost on wood flooring = $14,800
Less: Fixed cost savings = $71,000
Operating Income INCREASE if laminate flooring is dropped = $14,200
Should DROP
Top managers of Rhode Island Flooring are alarmed by their operating losses. They are considering dropping...
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 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 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...
Answer these 2 problems. E8-23A Decide whether to discontinue a product line (Learning Objective 4) Top managers of Vermont Flooring are alarmed by their operating losses. They sidering dropping the laminate flooring product line. Company accountants have pared the following analysis to help make this decision: Vermont Flooring Product Line Contribution Margin Income Statement For the Year Product lines Laminate od flooring flooring Company Total 306000 128.000 434000 7 Sales revenue 156000 22.000 238000 8 Les Variable expenses 150 000...
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 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 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 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...
Please kindly open the attachment and enlarge it to view. all data included. Top managers of Entertainment Plus 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. B)(Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDs. Requirements Requirement 1. Prepare an incremental analysis to show whether Entertainment Plus should drop the DVD product...
please answer the following. 4 Analyze special order decision (Learning Objective 3) O Products manufactures t-shirts. It has the following costs when its production level is 100,000 units (t-shirts): Total costs for 100,000 units Direct materials ................. $ 320,000 Direct labor ............ 40,000 Variable manufacturing overhead ...... 85,000 Fixed manufacturing overhead 120,000 Total manufacturing costs ......... $ 565,000 The company's relevant range extends to 115,000 units. Orr has received a special order for 10,000 t-shirts at a special price of...