Increase (Decrease) in total profit
= Avoidable fixed costs - Contribution margin lost
= 40,360 - 42,174
= -1814
New profit = -18,435-1814
= -20,249 (minus sign)
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 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 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: 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 Product A Product B Sales $177,020 $89,500 $87,520 Variable Costs 96,545 51,910 44,635 Contribution margin $80,475 $37,590 $42,885 Fixed costs: Avoidable 61,390 21,370 40,020 Unavoidable 33,830 5,750 28,080 Profit $-14,745 $10,470 $-25,215 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 $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 $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 $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?