Homework Answers
| Loss in Contribution margin of product B | -37840 | |
| Avoidable fixed costs | 29631 | |
| Increase in Contribution margin of product A | 15560 | =35200/88000*38900 |
| Additional fixed costs | -5000 | |
| Net change in profits | 2351 | |
| $2,351 is correct answer |
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The following income statement is for X Company's two products, A and B: Product A $68,000...
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $88,000 $90,000 Total variable costs 52,800 50,400 Total contribution margin $35,200 $39,600 Total fixed costs Avoidable 15,370 32,060 Unavoidable 11,130 27,310 Profit $8,700 $-19,770 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $27,700, with $3,400 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Revenue Total variable...
The following income statement is for X Company's two products, A and B: Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Product A $92,000 54,280 $37,720 Product B $88,000 52,800 $35,200 Unavoidable 16,354 15,096 $6,270 30,931 27,429 $-23,160 Profit If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,400, with $3,400 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products, A and B: Product A Product B Revenue $92,000 $85,000 Total variable costs 52,440 44,200 Total contribution margin $39,560 $40,800 Total fixed costs Avoidable 15,855 29,193 Unavoidable 15,855 26,947 Profit $7,850 $-15,340 If X Company drops Product B because it shows a loss and is able to use the vacant space to increase sales of Product A by $38,600, with $4,200 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product Product $90,000...
The following income statement is for X Company's two products, A and B: Product Product $90,000 53,100 $36,900 $86,000 50,740 $35,260 Revenue Total variable costs Total contribution margin Total fixed costs Avoidable Unavoidable Profit 33,762 22,508 $-19,370 13,276 12,254 $9,730 If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $29,700, with $4,200 of additional fixed costs, what will be the effect on firm...
Mulle statement is for X Company's two products, A and B: Product Product $95,000 57,000 $95,000...
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8 pt The following income statement is for X Company and its only two products -...
8 pt The following income statement is for X Company and its only two products - A and B Product A Total Product B $94,000 54,520 $39,480 $179,170 97,957 $81,213 $85,170 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 43,437 $41,733 48,180 30,790 82,243 20,260 27,920 25,180 S-11,367 5,610 $13,610 Profit Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits...
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and...
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The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $181,000. $88,150. $92,850 Variable Costs. 100,384 50,245 50,139 Contribution margin $80,616 $37,905. $42,711 Fixed costs: Avoidable 64,830 24,440 40,390 Unavoidable 33,960 6,470 27,490 Profit $-18,174. $6,995 $-25,169 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will...
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Product Product Total A B Sales $185,980 $91,190 $94,790 Variable 110,676 53,802 56,874 Costs Contribution $75,304 $37,388 $37,916 margin Fixed costs: Avoidable 51,720 22,570 29,150 Unavoidable 34,150 2,960 26,190 Profit $-10,566 $6,858 $-17,424 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
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8 pt The following income statement is for X Company and its only two products - A and B Product A Total Product B $94,000 54,520 $39,480 $179,170 97,957 $81,213 $85,170 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 43,437 $41,733 48,180 30,790 82,243 20,260 27,920 25,180 S-11,367 5,610 $13,610 Profit Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Product Product Total A B Sales $185,980 $91,190 $94,790 Variable 110,676 53,802 56,874 Costs Contribution $75,304 $37,388 $37,916 margin Fixed costs: Avoidable 51,720 22,570 29,150 Unavoidable 34,150 2,960 26,190 Profit $-10,566 $6,858 $-17,424 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
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