Question

Service Pro provides two kinds of services. During the most recent accounting period, the two service lines produced the foll
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Service revenue from service 2 = $28,000

Total of material, labour and selling and administrative cost = $4,000 + $16,000 + $5,500 = $25,500

Service revenue - Total cost = $28,000 - $25,500 = $2,500

If Service 2 is stopped, Companies income gets reduced by $2,500.

1st option.

Add a comment
Know the answer?
Add Answer to:
Service Pro provides two kinds of services. During the most recent accounting period, the two service...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro lin and the Novice line sold 15,000 and 2,000 units, respectively. The...

    The Mansfield Company manufactures and sells two lines of fishing rods. During the most recent accounting period, the Pro lin and the Novice line sold 15,000 and 2,000 units, respectively. The company's most recent financial statements are shown below Sales Less cost of goods sold S 900.000 S 240,000 Uni-level production cost Depreciation. production equipment 600,000 135000 50.000 125,000 Gross margin Less operating expenses: $ 175000 S 55000 Unit-level selling and admin Costs Corporate-evel facility expenses (fixed) 65.000 36,000 S...

  • Classic Limo, Inc., provides limousine service to Tri-Cities airport. The price of the service is fixed...

    Classic Limo, Inc., provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each trip and most costs of providing service are stable for each trip. Marc Pence, the owner, budgets income by estimating two factors that fluctuate with the economy: the fuel cost associated with each trip and the number of customers who will take trips. Looking at next year, Marc develops the following estimates of contribution margin (price less variable...

  • Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the...

    Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $510,000 355,000 155,000 76,000 $79.000 Luxury $380,000 $235,000 145,000 38,000 $107.000 Sporty $130,000 120,000 10,000 38.000 $(28,000) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be...

  • - Calculate pro different alternatives. (LO4) AP Uller Company's most recent contribution margin format income statement...

    - Calculate pro different alternatives. (LO4) AP Uller Company's most recent contribution margin format income statement follows: Total Per Unit $15.00 Sales (20,000 units) $300,000 9.00 Less: Variable expenses 180,000 $ 6.00 Contribution margin 120,000 70,000 Less: Fixed expenses Profit S 50,000 "Bement is considering the following independent action to increase profit: Tease selling price by 15% with no change in total variable costs. Buduce variable costs to 50% of sales. Reduce fixed costs by $20.000. Settucions Calculate the profit...

  • 17 - Jaybird Company operates in a highly competitive market where the market price for its product is $50 per unit. Jay...

    17 - Jaybird Company operates in a highly competitive market where the market price for its product is $50 per unit. Jaybird desires a $15 profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable product cost per unit $ 15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000    To achieve the target cost per unit, Jaybird must reduce total expenses by how much? Multiple Choice $14,500 $3,500...

  • Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000...

    Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (9,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 297,000 171,000 126,000 55,100 $ 70,900 Per Unit $ 33.00 - 19.00 $ 14.00 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 2. What would be the revised net operating income per month if the sales...

  • Charlotte Company runs two candy stores, one in Gastonia and one in Concord. Operating income for...

    Charlotte Company runs two candy stores, one in Gastonia and one in Concord. Operating income for each store is as follows: Gastonia Store Concord Store Total Revenue $200,000 $120,000 $ 320,000 Operating costs: Cost of goods sold 75,000 60,000 135,000 Rent (renewable each year) 12,000 7,000 19,000 Hourly wages 35,000 26,000 61,000 Depreciation of equipment 10,000 10,000 20,000 Utilities 4,000 3,000 7,000 Allocated corporate overhead 30,000 20,000 50,000 Total operating costs 166,000 126,000 292,000 Operating income (loss) $34,000 ($6,000) $28,000...

  • Question Completion Status: QUESTION 5 Beta Company provided the following information for June: Beginning inventory of...

    Question Completion Status: QUESTION 5 Beta Company provided the following information for June: Beginning inventory of finished goods Beginning inventory of work-in-process Ending inventory of finished goods Direct labor used $5,000 $18,000 $ 3,000 $13,000 $10,000 4,000 $5,500 Raw materials used Manufacturing overhead Cost of goods manufactured (COGM) The company's cost of goods sold (COGS) for June is OA $3,500 B. $2,500 OC.$7,500 D. $42,000 QUESTION 6 Compute cost of ending inventory using the following data: $32,000 Cost of beginning...

  • Miller Company's most recent contribution format income statement is shown below: Total $370,000 259,000 Per Unit...

    Miller Company's most recent contribution format income statement is shown below: Total $370,000 259,000 Per Unit $10.00 Sales (37,000 units) Variable expenses 7.00 Contribution margin $3.00 111,000 Fixed expenses 47,000 64,000 Net operating income Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 16% Miller Company Contribution Income Statement...

  • 34445 A service company, SUPER CLEAN, provides commercial and residential cleaning services. The company is currently...

    34445 A service company, SUPER CLEAN, provides commercial and residential cleaning services. The company is currently using a job costing system. Overhead are allocated based on the direct labour hours. A. Traditional Costing with plant wide method: Using traditional costing the company calculated the overhead cost based on 21 000 hours of activity: Activity cost pools Receptionist Office supplies Estimated cost $ 25,000 $ 3,000 $ 32,500 $ 37.500 $ 98,000 Depreciation tota Required - Part A: Calculate the overhead...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT