a beverage company is considering whether to discontinue its line of grape soda. what factors will...
Homework Answers
The factors which can affect the company’s decision of whether to discontinue its line of grape soda are as follows:
- Economic disposition of the region: the purchasing capacity of the target customers depicts the course of future business of the product
- Local Government policies, taxes and tariffs: If the government is levying too much tax on the product that its overall profitability is getting affected, then its better that the company discontinues the product
- Competition in the region: If there is low competition in the region, then the company can think about continuing the production of the product
- Social and cultural disposition: If the religious sentiments of the people of the region is getting affected by he product, then its better to discontinue the product
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a
beverage company is considering whether to discontinue its line of
grape soda.
what factors will...
Answer these 2 problems. E8-23A Decide whether to discontinue a product line (Learning Objective 4) Top...
Answer these 2 problems.
E8-23A Decide whether to discontinue a product line (Learning Objective 4) Top managers of Vermont Flooring are alarmed by their operating losses. They sidering dropping the laminate flooring product line. Company accountants have pared the following analysis to help make this decision: Vermont Flooring Product Line Contribution Margin Income Statement For the Year Product lines Laminate od flooring flooring Company Total 306000 128.000 434000 7 Sales revenue 156000 22.000 238000 8 Les Variable expenses 150 000...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev erages as a measure to raise revenue as well as to prevent obesity. You may expect that as the taxes reduce soda bever age consumption, the revenue raised would also decrease However, the government tax policy is always effective: this is because either the tax effectively reduces soda beverage consumption or if the consumption doesnt decrease, t government raises huge revenue from the tax....
A diversified food company is considering the closing of its condiment division. What qualitative factors should...
A diversified food company is considering the closing of its condiment division. What qualitative factors should be considered before discontinuing a division or product line?
: Wuestion Help Suppose Wheatum is considering discontinuing its mallow charms product line. Assume that during...
: Wuestion Help Suppose Wheatum is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms' product line income statement showed the following: Click the icon to view the income statement data.) (Click the icon for additional information. If the company decides to discontinue the product line, what will happen to the company's operating income? Should Wheatum discontinue the mallow charms product line? Begin by preparing a contribution margin income statement for the mallow...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2018, the company transferred $860,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 3% fee (3% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $66,000....
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $810,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 5% fee (5% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $61,000....
A Canadian company is presently considering undertaking a mining project to extract soda ash. The company...
A Canadian company is presently considering undertaking a mining project to extract soda ash. The company expects to produce 300,000 tons of soda ash annually in 2021. This will meet the present annual demand in Canada. The total cost of buying the soda ash mine is $400m. This will be paid $200m now (31 December, 2019) and $200m on 31 December, 2020. The company will also purchase new machineries for the mining production at the end of 2020, which will...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $860,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 3% fee (3% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $66,000....
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $950,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 4% fee (4% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $75,000....
1. Prepare an incremental analysis to show whether Security FirstSecurity First should discontinue the industrial systems...
1.
Prepare an incremental analysis to show whether Security
FirstSecurity First should discontinue the industrial systems
product line.
2.
Prepare contribution margin income statements to show Security
First's total operating income under the two alternatives: (a)
with the industrial systems line and (b) without the line. Compare
the difference between the two alternatives' income numbers to
your answer to Requirement 1. What have you learned from this
comparison?
Company accountants estimate that discontinuing the industrial systems line will decrease fixed...
Answer these 2 problems.
E8-23A Decide whether to discontinue a product line (Learning Objective 4) Top managers of Vermont Flooring are alarmed by their operating losses. They sidering dropping the laminate flooring product line. Company accountants have pared the following analysis to help make this decision: Vermont Flooring Product Line Contribution Margin Income Statement For the Year Product lines Laminate od flooring flooring Company Total 306000 128.000 434000 7 Sales revenue 156000 22.000 238000 8 Les Variable expenses 150 000...
ECONOMICS IN PRACTICE Soda Beverage Choice Many countries have started imposing a tax on soda bev erages as a measure to raise revenue as well as to prevent obesity. You may expect that as the taxes reduce soda bever age consumption, the revenue raised would also decrease However, the government tax policy is always effective: this is because either the tax effectively reduces soda beverage consumption or if the consumption doesnt decrease, t government raises huge revenue from the tax....
: Wuestion Help Suppose Wheatum is considering discontinuing its mallow charms product line. Assume that during the past year, the mallow charms' product line income statement showed the following: Click the icon to view the income statement data.) (Click the icon for additional information. If the company decides to discontinue the product line, what will happen to the company's operating income? Should Wheatum discontinue the mallow charms product line? Begin by preparing a contribution margin income statement for the mallow...
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $860,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 3% fee (3% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $66,000....
Samson Wholesale Beverage Company regularly factors its accounts receivable with the Milpitas Finance Company. On April 30, 2021, the company transferred $950,000 of accounts receivable to Milpitas. The transfer was made without recourse. Milpitas remits 90% of the factored amount and retains 10%. When Milpitas collects the receivables, it remits to Samson the retained amount less a 4% fee (4% of the total factored amount). Samson estimates the fair value of the last 10% of its receivables to be $75,000....
1.
Prepare an incremental analysis to show whether Security
FirstSecurity First should discontinue the industrial systems
product line.
2.
Prepare contribution margin income statements to show Security
First's total operating income under the two alternatives: (a)
with the industrial systems line and (b) without the line. Compare
the difference between the two alternatives' income numbers to
your answer to Requirement 1. What have you learned from this
comparison?
Company accountants estimate that discontinuing the industrial systems line will decrease fixed...
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