A division of a large company reports the information shown below for a recent year. Variable...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 50% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated?
| Sales | $ | 260,000 | |
| Variable costs | 146,000 | ||
| Fixed costs | |||
| Direct | 31,000 | ||
| Indirect | 59,000 | ||
| Operating loss | $ | (24,000 | ) |
1-a. Compare the amounts of total revenues and total
avoidable expenses.
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A division of a large company reports the information shown
below for a recent year. Variable...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? $ 265,000 146,000 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 51,000 (29,000) $ 1-a. Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by
Check my work A division of a large company reports the information shown below for a...
Check my work A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 50% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? 1.42 points $ 260,000 161,000 Sales Variable costs Yixed costs Direct Indirect Operating loss eBook 38,000 51.000 $ (10,000) Hint Ask Print 1-a. Compare the amounts of total revenues and total avoidable expenses. References Revenues Avoidable...
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent y...
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40 % of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales 270,000 149,000 Variable costs Fixed costs Direct 32,000 56,000 $ (33,000) Indirect Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues Avoidable expenses Revenues are greater...
QS 25-26 Segment elimination LO A1 A division of a large company reports the information shown...
QS 25-26 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. The following information are: Sales $ 200,000 Variable costs 145,000 Fixed costs Direct 30,000 Indirect 50,000 Operating loss $ (25,000 ) 1-a. Compute the total amount of avoidable expenses. 1-b. Based on this information, should the division be eliminated? Yes No
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher...
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher than its $95,690 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $74,000 11,850 560 9,000 $2,450 1,800 2,930 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division is: Sales Expenses: Direct expenses Indirect expenses Service department costs...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following expenses for this division. Unavoidable Expenses Avoidable Expenses $ 60,500 9,850 Cost of goods sold Direct expenses Indirect expenses Service department costs 770 $ 2,650 1,800 1,480 9,400 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss)...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher t...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher than its $93,900 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 70,000 11,150 530 12,000 $ 2,750 1,750 1,580 Should the division be eliminated? Kept Eliminated 70,000 Electric Guitar Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher t...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher than its $81,320 sales. The company reports the following expenses for this division. Unavoidable Avoidable Expenses $ 59,500 9,350 Expenses Cost of goods sold Direct expenses Indirect expenses $2,750 2,000 2,480 860 Service department costs 11,400 Should the division be eliminated? Electric Guitar Division is: Кept Eliminated Sales Expenses: Total expenses Net income (loss) woruoouqooI Revenues from electric guitar division Avoidable expenses Revenues are...
Current Attempt in Progress Linda Williams, a recent graduate of Bell's accounting program, evaluated the operating...
Current Attempt in Progress Linda Williams, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Linda made the following presentation to Cullumber's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,100 The Other Five Divisions Percy Division Total Sales $100,900 $1,763,900 $1,663,000 977,300 Cost of goods sold 76,800 1,054,100 709,800 Gross profit Operating expenses 685,700 528,400 $157,300...
Exercise 20-15 (Video) Ruth Lewis, a recent graduate of Bell's accounting program, evaluated the operating performance...
Exercise 20-15 (Video) Ruth Lewis, a recent graduate of Bell's accounting program, evaluated the operating performance of Sunland Company's six divisions. Ruth made the following presentation to Sunland's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,100." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,664,000 $100,300 977,900 76,300 686,100 24,000 528,000 50,100 $158,100 $...
A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? $ 265,000 146,000 Sales Variable costs Fixed costs Direct Indirect Operating loss 39,000 51,000 (29,000) $ 1-a. Compare the amounts of total revenues and total avoidable expenses. Revenues Avoidable expenses Revenues are greater than (less than) avoidable expenses by
Check my work A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 50% of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? 1.42 points $ 260,000 161,000 Sales Variable costs Yixed costs Direct Indirect Operating loss eBook 38,000 51.000 $ (10,000) Hint Ask Print 1-a. Compare the amounts of total revenues and total avoidable expenses. References Revenues Avoidable...
QS 10-14 Segment elimination LO A1 A division of a large company reports the information shown below for a recent year. Variable costs and direct fixed costs are avoidable, and 40 % of the indirect fixed costs are avoidable. Based on this information, should the division be eliminated? Sales 270,000 149,000 Variable costs Fixed costs Direct 32,000 56,000 $ (33,000) Indirect Operating loss 1-a. Compare the amounts of total revenues and total avoidable expenses Revenues Avoidable expenses Revenues are greater...
A guitar manufacturer is considering eliminating its electric guitar division because its $102,590 expenses are higher than its $95,690 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $74,000 11,850 560 9,000 $2,450 1,800 2,930 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Kept Eliminated Electric Guitar Division is: Sales Expenses: Direct expenses Indirect expenses Service department costs...
A guitar manufacturer is considering eliminating its electric guitar division because its $86,450 expenses are higher than its $80,890 sales. The company reports the following expenses for this division. Unavoidable Expenses Avoidable Expenses $ 60,500 9,850 Cost of goods sold Direct expenses Indirect expenses Service department costs 770 $ 2,650 1,800 1,480 9,400 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Electric Guitar Division is: Kept Eliminated Sales Expenses: Total expenses Net income (loss)...
A guitar manufacturer is considering eliminating its electric guitar division because its $99,760 expenses are higher than its $93,900 sales. The company reports the following expenses for this division. Unavoidable Expenses Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $ 70,000 11,150 530 12,000 $ 2,750 1,750 1,580 Should the division be eliminated? Kept Eliminated 70,000 Electric Guitar Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Total expenses...
A guitar manufacturer is considering eliminating its electric guitar division because its $88,340 expenses are higher than its $81,320 sales. The company reports the following expenses for this division. Unavoidable Avoidable Expenses $ 59,500 9,350 Expenses Cost of goods sold Direct expenses Indirect expenses $2,750 2,000 2,480 860 Service department costs 11,400 Should the division be eliminated? Electric Guitar Division is: Кept Eliminated Sales Expenses: Total expenses Net income (loss) woruoouqooI Revenues from electric guitar division Avoidable expenses Revenues are...
Current Attempt in Progress Linda Williams, a recent graduate of Bell's accounting program, evaluated the operating performance of Cullumber Company's six divisions. Linda made the following presentation to Cullumber's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,100 The Other Five Divisions Percy Division Total Sales $100,900 $1,763,900 $1,663,000 977,300 Cost of goods sold 76,800 1,054,100 709,800 Gross profit Operating expenses 685,700 528,400 $157,300...
Exercise 20-15 (Video) Ruth Lewis, a recent graduate of Bell's accounting program, evaluated the operating performance of Sunland Company's six divisions. Ruth made the following presentation to Sunland's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,100." Sales Cost of goods sold Gross profit Operating expenses Net income The Other Percy Five Divisions Division $1,664,000 $100,300 977,900 76,300 686,100 24,000 528,000 50,100 $158,100 $...
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