Financial Disadvantage | $ (350,000.00) |
Working
Total | Hardware | Linens | |
Sales | $ 2,700,000 | $ 2,700,000 | |
Variable expenses | $ 810,000 | $ 810,000 | |
Contribution margin | $ 1,890,000 | $ 1,890,000 | $ 0 |
Fixed expenses | $ 1,740,000 | $ 1,400,000 | $ 340,000 |
Net operating income | $ 150,000 | $ 490,000 | -$ 3,40,000 |
Decrease in net operating income $518,920 | |
Net income Earlier | $ 500,000 |
Net income Now | $ 150,000 |
Financial Disadvantage | $ 350,000 |
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Check my work Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Tota $ 4,000,000 3,000,000 $ 1,000,000 900,000 40o,000 600,000 2.200,000 1,400,000800,00 s 500,000 700,000 (200,000) Sales 1,300,000 Contribution margin Pixed expenses Net operating income (loss) 2,700,000 2,100,000 A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped....
Exercise 11-17 Dropping or Retaining a Segment (LO11-2] Bed & Bath, a retailing company has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Total $ 4,220,00 1,348,800 2,872, eee 2,240,00 Department Hardware Linens $ 3,850, eee $ 1,178,888 934, eee 414,888 2, 116, eee 756,888 1,340,899 980,000 $ 276.000 s (144.eee) 632eee A Study indicates that $374,000 of the fixed expenses being charged...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: A study indicates that $340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department. Required: What is the financial advantage (disadvantage) of discontinuing...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company’s most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $ 4,230,000 $ 3,050,000 $ 1,180,000 Variable expenses 1,258,000 839,000 419,000 Contribution margin 2,972,000 2,211,000 761,000 Fixed expenses 2,250,000 1,440,000 810,000 Net operating income (loss) $ 722,000 $ 771,000 $ (49,000 ) A study indicates that $371,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue...
Managerial Accounting Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows Department Total Hardware Linens Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $4,320,000 $ 3,140,000 $ 1,180,000 420,000 760,000 810,000 1,273,000e 3,047,000 2, 287,000 2,150,000 1, 340,000 853,000 $ 897,000 $ 947,000 $(50,000) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will...
omework Help Sev Exercise 11-17 Dropping or Retaining a Segment [L011-2 Bed & Bath, a retalling company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows Sales Variable expenses ContrIbution margin Fixed expenses Net operating income (loss 4,130,0e 5 3,138,68 1,800,90 2,822,ee 2,160,08e 230,090 592,00 662,000 $ 870,000% (20,000) A study indicates that $378,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the...
Document1 - Word ilings Review View Add-ins Help Tell me what you want to do AEE E B 2 21 AaBbcedd AoBbceDd AaBbc Aabbcct AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title - A Paragraph Styles Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Department Total Hardware Linens Sales $4,000,000 $3,000,000 $1,000,000 Variable expenses 1,300,000 900,000 400,000 Contribution margin 2,700,000 2,100,000 600,000 Fixed expenses...
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Department Hardware Linens Total $ 4,240,000 $ 3,120,000 ş1,120,000 Sales Variable expenses 1,335,000 934,000 401,000 Contribution margin 2,186,000 719,000 2,905,000 Fixed expenses 2,130,000 1,330,000 800,000 775,000 $ 856,000 $ Net operating income (loss) (81,000) A study indicates that $377,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the...
Bed & Bath, a retailing company, has two departments—Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Department Total Hardware Linens $ 4,290,000 $3,150,000 $ 1,140,000 1,396,000 986,000 410,000 2,894,000 2,164,000 730,000 2,320,000 1,430,000 890,000 $ 574,000 $ 734,000 $ (160,000) Net operating income (loss) A study indicates that $376,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if...
Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent monthly contribution format income statement follows: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Department Total Hardware Linens $ 4,290,000 $ 3,110,000 $ 1,180,000 1,403,000 985,000 418,000 2,887,000 2,125,000 762,000 2,210,000 1,370,000 840,000 $ 677,000 $ 755,000 $ (78,000) A study indicates that $380,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even...