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Check my work A division of a large company reports the information shown below for a...
A division of a large company reports the information shown below for a recent year. Variable...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 50% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales $ 260,000 Variable costs 146,000 Fixed costs Direct 31,000 Indirect 59,000 Operating loss $ (24,000 ) 1-a. Compare the amounts of total revenues and total avoidable expenses.
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? $ 265,000 146,000 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 51,000 (29,000) $ 1-a. Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent y...
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40 % of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales 270,000 149,000 Variable costs Fixed costs Direct 32,000 56,000 $ (33,000) Indirect Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues Avoidable expenses Revenues are greater...
QS 25-26 Segment elimination LO A1 A division of a large company reports the information shown...
QS 25-26 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. The following information are: Sales $ 200,000 Variable costs 145,000 Fixed costs Direct 30,000 Indirect 50,000 Operating loss $ (25,000 ) 1-a. Compute the total amount of avoidable expenses. 1-b. Based on this information, should the division be eliminated? Yes No
Item28 eBook Print References Check my work Check My Work button is now enabledItem 28 Item...
Item28 eBook Print References Check my work Check My Work button is now enabledItem 28 Item 28 A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $72,000 sales. The company reports the following expenses for this division. Avoidable Expenses Unavoidable Expenses Cost of goods sold $ 56,000 Direct expenses 9,250 $ 1,250 Indirect expenses 470 1,600 Service department costs 6,000 1,430 Should the division be eliminated?
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher...
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher than its $95,690 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $74,000 11,850 560 9,000 $2,450 1,800 2,930 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division is: Sales Expenses: Direct expenses Indirect expenses Service department costs...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher t...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher than its $93,900 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 70,000 11,150 530 12,000 $ 2,750 1,750 1,580 Should the division be eliminated? Kept Eliminated 70,000 Electric Guitar Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher t...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher than its $81,320 sales. The company reports the following expenses for this division. Unavoidable Avoidable Expenses $ 59,500 9,350 Expenses Cost of goods sold Direct expenses Indirect expenses $2,750 2,000 2,480 860 Service department costs 11,400 Should the division be eliminated? Electric Guitar Division is: Кept Eliminated Sales Expenses: Total expenses Net income (loss) woruoouqooI Revenues from electric guitar division Avoidable expenses Revenues are...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following expenses for this division. Unavoidable Expenses Avoidable Expenses $ 60,500 9,850 Cost of goods sold Direct expenses Indirect expenses Service department costs 770 $ 2,650 1,800 1,480 9,400 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss)...
Check my work Kando Company incurs a $11.00 per unit cost for Product A, which it...
Check my work Kando Company incurs a $11.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $10.60 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $11.00 per unit costs of Product A would be eliminated. 1.42 points 1. Prepare Incremental cost analysis. Should the company...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? $ 265,000 146,000 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 51,000 (29,000) $ 1-a. Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40 % of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales 270,000 149,000 Variable costs Fixed costs Direct 32,000 56,000 $ (33,000) Indirect Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues Avoidable expenses Revenues are greater...
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher than its $95,690 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $74,000 11,850 560 9,000 $2,450 1,800 2,930 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division is: Sales Expenses: Direct expenses Indirect expenses Service department costs...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher than its $93,900 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 70,000 11,150 530 12,000 $ 2,750 1,750 1,580 Should the division be eliminated? Kept Eliminated 70,000 Electric Guitar Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher than its $81,320 sales. The company reports the following expenses for this division. Unavoidable Avoidable Expenses $ 59,500 9,350 Expenses Cost of goods sold Direct expenses Indirect expenses $2,750 2,000 2,480 860 Service department costs 11,400 Should the division be eliminated? Electric Guitar Division is: Кept Eliminated Sales Expenses: Total expenses Net income (loss) woruoouqooI Revenues from electric guitar division Avoidable expenses Revenues are...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following expenses for this division. Unavoidable Expenses Avoidable Expenses $ 60,500 9,850 Cost of goods sold Direct expenses Indirect expenses Service department costs 770 $ 2,650 1,800 1,480 9,400 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss)...
Check my work Kando Company incurs a $11.00 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, the company can purchase it for $5.00 per unit and sell it for $10.60 per unit. If it does so, unit sales would remain unchanged and $5.00 of the $11.00 per unit costs of Product A would be eliminated. 1.42 points 1. Prepare Incremental cost analysis. Should the company...
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