Homework Answers
| CALCULATION OF PROFIT AFTER DROPPING PRODUCT A | |||
| PRODUCT B | |||
| Sales | $90,470 | ||
| Variable Cost | $51,568 | ||
| Contribution margin | $38,902 | ||
| Fixed Cost | |||
| Avoidable | $22,390 | ||
| Unavoidable | $36,330 | ||
| Profit | -$19,818 | ||
| IF the company dropped Product A than unavoidable cost of full company will be born by product B | |||
| and there is loss of $ 19,818 | |||
| Answer = Option C = - $ 19,818 | |||
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e1OlOwing income statement is for X Company and its only two products- A and B: Total $184,760 99,656 $85,104 Produ...
8 pt The following income statement is for X Company and its only two products -...
8 pt The following income statement is for X Company and its only two products - A and B Product A $93,040 54,894 $38,146 Total Product B $187,400 107,735 $79,665 Sales $94,360 52,842 $41,518 Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 50,950 29,570 26,180 S-17,604 21,380 5,150 $14,988 31,330 $-2,615 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits...
8 pt The following income statement is for X Company and its only two products -...
8 pt The following income statement is for X Company and its only two products - A and B Product A Total Product B $94,000 54,520 $39,480 $179,170 97,957 $81,213 $85,170 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 43,437 $41,733 48,180 30,790 82,243 20,260 27,920 25,180 S-11,367 5,610 $13,610 Profit Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits...
8 pt The following income statement is for X Company and its only two products -...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B $176,090 Sales $86,110 $89,980 99,510 Variable Costs 51,289 48,222 Contribution margin $76.580 $37,888 $38,691 Fixed costs: 62,820 Avoidable 42,350 20,470 36,990 Unavoidable 7,030 29,960 S-34.422 $-23,230 $11.191 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B $183,490 100,832 $82,658 $89,560 51,049 $38,511 $93,930 49,783 $44,147 Sales Variable Costs Contribution margin Fixed costs: Avoidable 61,820 31,330 $-10,492 23,610 6,080 $8,821 38,210 Unavoidable 25,250 $-19,313 ecause Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it roduct B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $180,560 $87,730 $92,830 Variable Costs 98,584 44,742 53,841 Contribution margin $81,976 $42,988 $38,989 Fixed costs: Avoidable 63,950 41,480 22,470 Unavoidable 35,550 29,920 5,630 Profit $-17,524 $-28,412 $10,889 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $181,000. $88,150. $92,850 Variable Costs. 100,384 50,245 50,139 Contribution margin $80,616 $37,905. $42,711 Fixed costs: Avoidable 64,830 24,440 40,390 Unavoidable 33,960 6,470 27,490 Profit $-18,174. $6,995 $-25,169 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will...
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Product Product Total A B Sales $185,980 $91,190 $94,790 Variable 110,676 53,802 56,874 Costs Contribution $75,304 $37,388 $37,916 margin Fixed costs: Avoidable 51,720 22,570 29,150 Unavoidable 34,150 2,960 26,190 Profit $-10,566 $6,858 $-17,424 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Total $180,270 99,381 $80,889 Product A $86,260 44,855 $41,405 Product B $94,010 54,526 $39,484 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 63,530 36,430 $-19,071 38,720 28,530 $-25,845 24,810 7,900 $6,774 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
The following income statement is for X Company and its only two products - A and...
The following income statement is for X Company and its only two products - A and B: Total $181,100 102,336 $78,764 Product A $90,260 48.740 $41,520 Product B $90,840 53.596 $37,244 Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 54,660 34,160 $-10,056 31,070 27,450 $-17,000 23,590 6.710 $6,944 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
8 pt The following income statement is for X Company and its only two products - A and B Product A $93,040 54,894 $38,146 Total Product B $187,400 107,735 $79,665 Sales $94,360 52,842 $41,518 Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 50,950 29,570 26,180 S-17,604 21,380 5,150 $14,988 31,330 $-2,615 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits...
8 pt The following income statement is for X Company and its only two products - A and B Product A Total Product B $94,000 54,520 $39,480 $179,170 97,957 $81,213 $85,170 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable 43,437 $41,733 48,180 30,790 82,243 20,260 27,920 25,180 S-11,367 5,610 $13,610 Profit Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B $176,090 Sales $86,110 $89,980 99,510 Variable Costs 51,289 48,222 Contribution margin $76.580 $37,888 $38,691 Fixed costs: 62,820 Avoidable 42,350 20,470 36,990 Unavoidable 7,030 29,960 S-34.422 $-23,230 $11.191 Profit Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits...
8 pt The following income statement is for X Company and its only two products - A and B: Total Product A Product B $183,490 100,832 $82,658 $89,560 51,049 $38,511 $93,930 49,783 $44,147 Sales Variable Costs Contribution margin Fixed costs: Avoidable 61,820 31,330 $-10,492 23,610 6,080 $8,821 38,210 Unavoidable 25,250 $-19,313 ecause Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it roduct B, X Company's new profits will be...
The following income statement is for X Company and its only two
products - A and B:
Total
Product A
Product B
Sales
$174,760
$85,650
$89,110
Variable Costs
96,836
51,390
45,446
Contribution margin
$77,924
$34,260
$43,664
Fixed costs:
Avoidable
71,970
24,600
47,370
Unavoidable
31,500
5,270
26,230
Profit
$-25,546
$4,390
$-29,936
Because Product B is showing a loss, X Company is considering
dropping it and saving its avoidable fixed costs. If it drops
Product B, X Company's new profits will be...
The following income statement is for X Company and its only two products - A and B: Product Product Total A B Sales $185,980 $91,190 $94,790 Variable 110,676 53,802 56,874 Costs Contribution $75,304 $37,388 $37,916 margin Fixed costs: Avoidable 51,720 22,570 29,150 Unavoidable 34,150 2,960 26,190 Profit $-10,566 $6,858 $-17,424 Because Product B is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product B, X Company's new profits will be
The following income statement is for X Company and its only two products - A and B: Total $180,270 99,381 $80,889 Product A $86,260 44,855 $41,405 Product B $94,010 54,526 $39,484 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 63,530 36,430 $-19,071 38,720 28,530 $-25,845 24,810 7,900 $6,774 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
The following income statement is for X Company and its only two products - A and B: Total $181,100 102,336 $78,764 Product A $90,260 48.740 $41,520 Product B $90,840 53.596 $37,244 Sales Variable costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 54,660 34,160 $-10,056 31,070 27,450 $-17,000 23,590 6.710 $6,944 Because Product A is showing a loss, X Company is considering dropping it and saving its avoidable fixed costs. If it drops Product A, X Company's new profits will be
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