Operating Income will increase by the amount of fixed costs avoided - contribution margin lost
Since none of the fixed expenses are avoidable, Operating Income will decrease by the amount of contribution margin lost
i..e $8,000
Hence, the answer is B.
Mission Company has three product lines: D, E, and F. The following information is available: Sales revenue Variabl...
Mission Company has three product lines: D, E, and F. The following information is available: D E F Sales revenue $ 84,000 $45,000 $ 20,000 Variable expenses $ 44,000 $26,000 $ 12,000 Contribution margin $ 40,000 $19,000 $ 8,000 Fixed expenses $ 12,000 $15,000 $17,000 Operating income (loss) $ 28,000 $4000 $(9,000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Mission Company discontinues product line F and...
Mission Company has three product lines: D, E, and F. The following information is available: Sales revenue $85.000 $44,000 $20,000 Variable expenses $45,000 $21,000 $12,000 $40,000 $23,000 $8,000 $15.000 $12,000 $17,000 Fixed expenses $28,000 Operating income (105) $8,000 $(9.000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed costs are unavoidable. Assume Mission Company is able to increase the sales revenue of product F to $35,000 with no change in volume...
Mission Company has three product lines: D, E, and F. The following information is available: D E F Sales revenue $ 80,000 $44,000 $23,000 Variable expenses $ 41,000 $22,000 $16,000 $ 39,000 $22,000 $ 7,000 Fixed expenses $ 12,000 $15,000 $17,000 Operating income (loss) $ 27,000 $ 7,000 ($10,000) Mission Company is thinking of discontinuing product line F because it is reporting an operating loss. All fixed expenses are unavoidable. Assuming Mission Company discontinues...
how do i solve Question Help Mission Company has three product lines: D, E, and F. The following information is available Sales revenue Variable expenses 3000 $10.000 3000 $12.000 $45.000 $26.000 $10.000 $15.000 $ 20,000 $12.000 $ 8.000 $17.000 Fixed expenses Operating income (loss) Mission Company is thinking of discontinuing product line F because is reporting an operating loss. Alfred costs are un produce product F for $17,000 per you what affect will this have on operating income? doble Mission...
Percy Productions has three models: D, E, and F. The following information is available: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Model D $70,000 $32,000 $38,000 $19,000 $19,000 Model E $34,000 $13,000 $21,000 $19,000 $2,000 Model F $24,000 $14,000 $10,000 $19,000 $(9,000) Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Percy Productions discontinues model F and rents the space formerly used to produce product...
Percy Productions has three models: D, E, and F. The following information is available: Model D Model E Model F Sales revenue $68,000 $38,000 $24,000 Variable expenses $32,000 $13,000 $14,000 Contribution margin $36,000 $25,000 $10,000 Fixed expenses $20,000 $20,000 $20,000 Operating income (loss) $16,000 $5,000 $(10,000) Percy Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable. Percy Productions discontinues model F and rents the space formerly used to produce product...
Percy Productions has three models: D, E, and F. The following information is available: Sales revenue Variable expenses Contribution margin Model D $70,000 $32,000 $38,000 Model E $36,000 $13,000 $23,000 Model F $24,000 $14,000 $10,000 AMAN O A. Increase $6,000 OB. Increase $20,000 O c. Decrease $6,000 OD. Decrease $20,000 Click to select your answer. < Previous Contribution margin Fedexpenses Operating income oss S18000 $19,000 $19.000 3000 $10,000 54000 310.000 $19.000 $0.000) Percy Production is thing of disconting model because...
Cambridge Roller Skates has three product lines-D, E, and F. The following information is available: Sales revenue $70,000 $60,000 $30,000 Variable costs (40,000) (115.000) (10.000) Contribution margin $30,000 $45,000 $20,000 Fixed costs (15.000) (5.000) (23.000) Operating income (loss) $15,000 $40,000 $(3,000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $21,000 of total fixed costs could be eliminated by O A. Operating income will decrease by $1,000 O B. Operating income...
Momentum Rollerblades has three product lines—D, E, and F. The following information is available: D E F Sales revenue $70,000 $40,000 $31,000 Variable costs (20,000) (5000) (11,000) Contribution margin $50,000 $35,000 $20,000 Fixed costs (10,000) (15,000) (24,000) Operating income (loss) $40,000 $20,000 $(4000) The company is deciding whether to drop product line F because it has an operating loss. Assume that $22,000 of total fixed costs could be eliminated by dropping F. What effect would this decision have on...
Karlson Roller Skates has three product lineslong dashD, E, and F. The following information is available: D E F Sales revenue $ 70 comma 000 $ 60 comma 000 $ 30 comma 000 Variable costs (40 comma 000) (5 comma 000) (12 comma 000) Contribution margin $ 30 comma 000 $ 55 comma 000 $18 comma 000 Fixed costs (10 comma 000) (15 comma 000) (23 comma 000) Operating income (loss) $ 20 comma 000 $ 40 comma 000 $(5...