TB MC Qu. 12-110 The management of Bonga Corporation ...
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below:
Sales | $ | 940,000 |
Variable expenses | $ | 419,000 |
Fixed manufacturing expenses | $ | 354,000 |
Fixed selling and administrative expenses | $ | 261,000 |
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $221,000 of the fixed manufacturing expenses and $132,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued.
According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation—whether relevant or not.
Garrison 16e Rechecks 2017-12-15
rev: 01_16_2018_QC_CS-111062
Multiple Choice
$94,000
($521,000)
($94,000)
$521,000
TB MC Qu. 12-110 The management of Bonga Corporation ... The management of Bonga Corporation is...
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 923,000 Variable expenses $ 405,500 Fixed manufacturing expenses $ 337,000 Fixed selling and administrative expenses $ 244,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $207,500 of the fixed manufacturing expenses and $118,500 of the fixed selling and administrative expenses are...
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 935,000 Variable expenses $ 414,000 Fixed manufacturing expenses $ 349,000 Fixed selling and administrative expenses $ 256,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $216,000 of the fixed manufacturing expenses and $127,000 of the fixed selling and administrative expenses are...
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 920,000 Variable expenses $ 404,000 Fixed manufacturing expenses $ 334,000 Fixed selling and administrative expenses $ 241,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $206,000 of the fixed manufacturing expenses and $117,000 of the fixed selling and administrative expenses are...
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 920,000 Variable expenses $ 404,000 Fixed manufacturing expenses $ 334,000 Fixed selling and administrative expenses $ 241,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $206,000 of the fixed manufacturing expenses and $117,000 of the fixed selling and administrative expenses are...
Chapter 12 Quiz 0 Seved Help Save & Exit Submit TB MC Qu. 12-59 Lusk Corporation produces and sells ... Lusk Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and variable expenses are $17 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $103.000 in monthly fixed expenses charged to Product X would not be...
TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $761,400 $395,600 $259,000 $221,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $183,000 of the fixed manufacturing expenses and $158,600 of the fixed selling and administrative expenses are...
TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales $ 820,000 Variable expenses $ 426,000 Fixed manufacturing expenses $ 278,600 Fixed selling and administrative expenses $ 237,800 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $197,000 of the fixed manufacturing expenses and $170,800 of the fixed selling...
TB Problem Qu. 12-175 The management of Wengel Corporation ... The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $782,100 $ 406, 400 $266,000 $227,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $188,000 of the fixed manufacturing expenses and $162,900 of the fixed selling and administrative...
Mcniff Corporation makes a range of products. The company's predetermined overhead rate is $26 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead $ 32,000 Fixed manufacturing overhead $ 384,000 Direct labor-hours 16,000 Management is considering a special order for 800 units of product O96S at $74 each. The normal selling price of product O96S is $85 and the unit product cost is determined as follows: Direct materials $ 47.00 Direct labor 18.00 Manufacturing overhead...
TB MC Qu. 12-63 Fabri Corporation is considering eliminating ... Fabri Corporation is considering eliminating a department that has an annual contribution margin of $27,000 and $73,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: 3.12 points (8 01:08:51 Multiple Choice ($46,000) $46,000 ($29,500) $29,500 Chapter 12 Quiz i Help Save & Exit Submit TB MC Qu. 12-64 The management of Furrow...