Homework Answers
Answer : True
explanation
if a segment or product is contributing its fixed costs ,it is not a best choice to discontinuing the segment or product because the overall profit of the company is unaffected .
if the segment or product is not contributing to fixed costs its overall profit will be decreased so it better choice to discontinue if the product or segment is not contributing to fixed costs .
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Discontinuing a segment or product may not be the best choice when the segment is contributing...
A company has two divisions, each selling several products. If segment reports are prepared for each...
A company has two divisions, each selling several products. If segment reports are prepared for each product, the division managers' salaries should be considered as traceable fixed costs of the products. True or False? All other things the same, if a division's traceable fixed expenses increase then the division's segment margin will decrease. True or False?
#2 hnson Company is considering discontinuing a product. The costs of the product consist of 20,000...
#2
hnson Company is considering discontinuing a product. The costs of the product consist of 20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. How much would Johnson gain or lose from discontinuing the product? A $19,000. ? $15,000. C. $35,000. D. $39,000. Answer: A 2 Madden Company is considering disposing of equipment that has originally purchased for $200,000 and has $150,000 accumulated depreciation to date. The same equipment would cost $300,000...
9. Which of the following statements about an operating segment is true? a. An operating segment...
9. Which of the following statements about an operating segment is true? a. An operating segment engages in business activities from which it may earn revenues and incur expenses but may not actually be earning revenues or incurring expenses at this point in time. b. An operating segment engages in business activities from which it may earn revenues and incur expenses and must be earning revenues or incurring expenses at this point in time. c. An operating segment’s operating results...
1.Empirical data is: Group of answer choices quantitative. secondary. 2.The majority fallacy may best be defined...
1.Empirical data is: Group of answer choices quantitative. secondary. 2.The majority fallacy may best be defined as: Group of answer choices believing the largest segment is the most profitable. defining the majority of consumers who are the most unique. assuming the majority of consumers will buy your product instead of those of your competitors. concentrating on the most homogeneous market segment. 3.Extracting information from large amounts of data is referred to as: Group of answer choices information processing. data sorting....
11. A gene is best defined as a. A segment of DNA b. Three nucleotides that...
11. A gene is best defined as a. A segment of DNA b. Three nucleotides that code for an amino acid. C. A sequence of nucleotides in DNA that codes for a functional product. d. A sequence of nucleotides in RNA that codes for a functional product. e. A transcribed unit of DNA. 12. Which of the following statements is false? a. DNA polymerase joins nucleotides in one direction only. b. The leading strand of DNA is made continuously c....
: 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...
question #10 Dropping an unprofitable product line or business segment will always increase profits. True or...
question #10 Dropping an unprofitable product line or business segment will always increase profits. True or False True False
Which of the following is not relevant when deciding whether or not to discontinue a product...
Which of the following is not relevant when deciding whether or not to discontinue a product line? A. The product line's contribution margin. B. Fixed costs that cannot be avoided by discontinuing the line. C. The effect on the sales of other products if the product line is discontinued. D. Fixed costs that can be avoided by discontinuing the line.
Exercise 12-15 Dropping or Retaining a Segment [LO12-2] Thalassines kataskeves, S.A., of Greece makes marine equipment....
Exercise 12-15 Dropping or Retaining a Segment [LO12-2] Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: $ 480,000 $ 130,000 51,000 21,000 202,000 278,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin...
Exercise 12-15 Dropping or Retaining a Segment (L012-2] Thalassines kataskeves, S.A., of Greece makes marine equipment....
Exercise 12-15 Dropping or Retaining a Segment (L012-2] Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: $ 430,000 $ 130,000 45,000 23,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses:...
#2
hnson Company is considering discontinuing a product. The costs of the product consist of 20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. How much would Johnson gain or lose from discontinuing the product? A $19,000. ? $15,000. C. $35,000. D. $39,000. Answer: A 2 Madden Company is considering disposing of equipment that has originally purchased for $200,000 and has $150,000 accumulated depreciation to date. The same equipment would cost $300,000...
11. A gene is best defined as a. A segment of DNA b. Three nucleotides that code for an amino acid. C. A sequence of nucleotides in DNA that codes for a functional product. d. A sequence of nucleotides in RNA that codes for a functional product. e. A transcribed unit of DNA. 12. Which of the following statements is false? a. DNA polymerase joins nucleotides in one direction only. b. The leading strand of DNA is made continuously c....
: 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...
question #10 Dropping an unprofitable product line or business segment will always increase profits. True or False True False
Exercise 12-15 Dropping or Retaining a Segment [LO12-2] Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: $ 480,000 $ 130,000 51,000 21,000 202,000 278,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin...
Exercise 12-15 Dropping or Retaining a Segment (L012-2] Thalassines kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: $ 430,000 $ 130,000 45,000 23,000 Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales Variable expenses: Variable manufacturing expenses Sales commissions Shipping Total variable expenses Contribution margin Fixed expenses:...
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