Help Aqua Life Jackets, Inc. has three product lines as shown below. The company is considering whether or not to eliminate any of its product lines. The results from the past yearare shown below.Total$18,500,000ChildrenAdultsInfant$1,500,000$12,000,0007,400,0004,600,000$5,000.000SalesVariable Costs12,500,0006,000,0004,000,0003,500,000$1,600,000(100,000)1,500,000Contribution MarginFixed Costs1,600,000(100,000)400,0002,000,0002,000,000|(500,000)2.600,000Opertating Income$205,000 of the fixed costs in each segment are direct to that segment. The rest of the fixed costs are common allocated fixed costs that would remain with the company whetherany segment is dropped. Identify which (if any) of the product lines should be eliminated.Eliminate-v 1. AdultB. Keep2. Children-V 3. Infant

Before determining the segment which is required to be dropped off let's know some 1.…

Aqua Life Jackets, Inc. has three product lines as shown below. The company is considering whether or not to eliminate any of its product lines. The results from the past year are shown below. Total Children $5,000,000 3,500,000 1,500,000 1,600,000 (100,000) Adults $12.000,000 7.400,000 4,600,000 2,000,000 2,600,000 Infant $1,500,000 $1,600,000 (100,000) 400,000 (500,000) $18,500,000 12,500,000 6,000,000 4,000,000 2,000,000 Sales Variable Costs Contribution Margin Fixed Costs Opertating Income $205,000 of the fixed costs in each segment are direct to that segment. The rest of the fixed costs are common allocated fixed costs that would remain with the company whether any segment is dropped. Identify which (if any) of the product lines should be eliminated. A. Eliminate V 1. Adult В. Кеер 2. Children v 3. Infant

Aqua Life Jackets, Inc. has three product lines as shown below. The company is considering whether or not to eliminate any of its product lines. The results from the past year are shown below. Total Children $5,000,000 3,500,000 1,500,000 1,600,000 (100,000) Adults $12.000,000 7.400,000 4,600,000 2,000,000 2,600,000 Infant $1,500,000 $1,600,000 (100,000) 400,000 (500,000) $18,500,000 12,500,000 6,000,000 4,000,000 2,000,000 Sales Variable Costs Contribution Margin Fixed Costs Opertating Income $205,000 of the fixed costs in each segment are direct to that segment. The rest of the fixed costs are common allocated fixed costs that would remain with the company whether any segment is dropped. Identify which (if any) of the product lines should be eliminated. A. Eliminate V 1. Adult В. Кеер 2. Children v 3. Infant

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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