Answer)
Income Statement- Present Situation
Particulars |
Total |
Product A |
Product B |
Sales |
$ 177,730 |
$ 90,050 |
$ 87,680 |
Variable Costs |
$ 97,657 |
$ 45,926 |
$ 51,731 |
Contribution Margin |
$ 80,073 |
$ 44,124 |
$ 35,949 |
Fixed Costs: |
|||
Avoidable |
$ 67,780 |
$ 42,900 |
$ 24,880 |
Unavoidable |
$ 35,530 |
$ 28,460 |
$ 7,070 |
Profit |
-$ 23,237 |
-$ 27,236 |
$ 3,999 |
Income Statement- If Product A is discontinued
Particulars |
Total |
Product A |
Product B |
Sales |
$ 87,680 |
0 |
$ 87,680 |
Variable Costs |
$ 51,731 |
0 |
$ 51,731 |
Contribution Margin |
$ 35,949 |
0 |
$ 35,949 |
Fixed Costs: |
|||
Avoidable |
$ 24,880 |
0 |
$ 24,880 |
Unavoidable |
$ 35,530 |
$ 28,460 |
$ 7,070 |
Profit |
-$ 24,461 |
-$ 28,460 |
$ 3,999 |
If product A is discontinued, X Company’s new profit will be -$ 24,461
Notes:
e following income statement is for X Company and its only two products A and B:...
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: A Product Product Total B Sales $172,820 $87,580 $85,240 Variable 95,950 49,921_46,030 Costs Contribution $76,870 $37,659 $39,210 margin Fixed costs: Avoidable 58,570 24,910 33,660 Unavoidable 35,100 5,500 29,600 Profit $-16,800 $7,249 $-24,050 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 H...
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 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 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
The following income statement is for X Company and its only two products - A and B: Total Product A Product B Sales $171,890 $85,180 $86,710 Variable Costs 97,080 50,256 46,823 Contribution margin $74,810 $34,924 $39,887 Fixed costs: Avoidable 55,490 22,850 32,640 Unavoidable 31,430 5,970 25,460 Profit $-12,110 $6,104 $-18,213 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 $181,260 103,195 $78,065 Product A $87,540 51,649 $35,891 Product B $93,720 51,546 $42,174 Sales Variable Costs Contribution margin Fixed costs: Avoidable Unavoidable Profit 63,620 32,880 $-18,435 23,260 5,730 $6,901 40,360 27,150 $-25,336 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 Product A Product B Sales $183,530 $90,190 $93,340 Variable Costs 103,710 50,506 53,204 Contribution margin $79,820 $39,684 $40,136 Fixed costs: Avoidable 52,270 30,380 21,890 Unavoidable 32,110 25,390 6,720 Profit $-4,560 $-16,086 $11,526 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?