BC Co. plans to discontinue a department that has a contribution margin of P60,000 and P100,000 in fixed costs. Of the fixed costs, P60,000 would still continue even if the department is closed. The effect of this discontinuance on Indian’s overall net operating income would be A. Zero effect B. increase of P20,000 C. decrease of P20,000 D. increase of P40,000   Answer with explanation please. Thank you

Q: A firm contemplates to drop a segment that shows a contribution margin of P25,000. Overhead…

A: Solution: Effect of this discontinuance on the company’s profit before tax = Avoidable overhead…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $600,000…

A: The correct option is:- It will Increase .d

Q: Your Company is considering eliminating a department that has a contribution margin of $35,000 and…

A: solution given  contribution margin $35000 Fixed cost $60000 Unavoidable fixed cost…

Q: Coronado Machines has four product lines, one of which reflects the following results: Sales…

A: Avoidable fixed costs = Total Fixed costs x 40% = 111000 x 40% = $44,400

Q: Wallen Corporation is considering eliminating a department that has an annual contribution magin of…

A: Annual financial advantage(disadvantage) for the company of eliminating this department = Savings of…

Q: The following information is available for Titan Based on this information, the management is…

A: Given, Fixed overhead can be avoided = 80% Fixed selling and administrative expenses can also be…

Q: Sammy Company is considering eliminating Its Commercial division. The company allocates fixed costs…

A: Loss of contribution margin = $44,200 Fixed cost saved = $101,000

Q: Refer to the original data. Rather than purchase new equipment, the marketing manager argues that…

A:

Q: Answer and solution please. Thank you! Gata Co. plans to discontinue a department with a P48,000…

A: Given that: Contribution to Overhead = P48000 Overhead that can not be eliminated = P42000

Q: A company that produces cameras has fixed costs of $153,000 per annum. The variable costs are 45% of…

A: Profit is amount available after deduction of the fixed cost and variable cost from the sales and is…

Q: Manor Company plans to discontinue a department that has a contribution margin of $25,000 and…

A: The effect of discontinuing the overall Profit = (Fixed cost - Avoidable fixed cost) -…

Q: The management of Bonga Corporation is considering dropping product D74F. Data from the company's…

A: Calculation of Financial Advantage (Disadvantage) if Product D74 is dropped      If Product D74…

Q: Manor Homes plans to discontinue a segment which last year generated a contribution margin of…

A: The fixed cost which is not avoidable is the costs that are incurred even if the segment is…

Q: how can the changes  below affect Mirabel’s overall cost structure. For those changes that are…

A: Break even point refers to that volume of operation where, there is no profit or loss to an…

Q: Pepper Industries has three product lines, A, B, and C. The following information is available:…

A: There are multiple types of business costs. The three main costs are known as variable costs, fixed…

Q: Bryson​ Company's western​ territory's forecasted income statement for the upcoming year is as​…

A: The differential analysis is performed when two alternatives are available with the organisation.

Q: Wallen Corporation is considering eliminating a department that has an annual contribution margin of…

A: Current net income = Contribution margin-Fixed costs Current net income = $80,000 - $160,000 Current…

Q: The following information relates to next year's projected operating results of the Children's…

A: Financial disadvantage can be calculated by deducting saving in fixed expenses from loss of…

Q: A study has been conducted to determine if Product A should be dropped. Sales of the product total…

A: Avoidable fixed expenses = total fixed expenses - applied fixed expenses = 210000-60000 = $150,000

Q: Mitchell Company manufactures a product with a unit variable cost of $50 and a unit sales price of…

A: As accepting the special order will not affect the fixed cost and the present sales (given), so the…

Q: The management of Furrow Corporation is considering dropping product LO7E. Data from the company's…

A: Sales 830,000   Less: Variable expense 365,000   Contribution margin 465,000   Less: Fixed…

Q: Firm A and firm B both have total revenues of $250,000 and total costs of $350,000.  Firm A has…

A: Revenue of Firm A and Firm B = $250,000 Total costs of Firm A and Firm B = $350,000 Fixed costs of…

Q: Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would…

A: For making the corporation profitable, it is important to make a financial analysis regarding the…

Q: Soar Incorporated is considering eliminating its mountain bike division, which reported an operating…

A: Operating Income : The operating income find Total revenue less operating expenses. It does not…

Q: A company sells its product at P30 per unit. Unit variable cost is P22 and otal fixed costs total to…

A: Answer) Total Profit = Contribution margin per unit – Total Fixed Costs Total Profit = (Selling…

Q: implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase…

A: The correct answer is :-  b. It will increase

Q: XYZ Company is facing changes in its cost structure so that fixed costs will increase from $400,000…

A: Cost that changes irrespective of production level are called fixed costs whereas costs that changes…

Q: A company operates with two departments: Department AA and Department BB. The manager is considering…

A:

Q: Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of…

A: Given, Contribution margin = $ 49000   Total Fixed Costs = $ 96000 Unavoidable FC = $ 42000…

Q: , door-to-door solution for residential and commercial removals. As the market for removal services…

A: Operational income is a financial ratio that measures after operating expenses, which are the costs…

Q: Your Company is considering discontinuing a product. Data from the company's accounting system…

A: This question deals with the concept of decision making.  Here in this question decision is about…

Q: Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000…

A: Avoidable fixed costs = fixed costs x (100%-42%) = $50,000 x 58% = $29,000

Q: Sales 200,000 Variable expenses 140,000 Fixed expenses 100,000

A: Solution: Contribution margin lost = Sales - variable expense = 200000 - 140000 =60,000

Q: Ortega Interiors provides design services to residential and commercial clients. The residential…

A: Net income / (loss) is the amount of money earned or incurred after deducting the outlays from the…

Q: A company has three product lines, one of which has the following results: Sales $214000 Variable…

A: Income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: The Draper Company is considering dropping its Dream bug toy due to continuing losses. Revenue and…

A: The given problem relates to decision making around shutting down of operations.

Q: The Draper Company is considering dropping its Dream bug toy due to continuing losses. Revenue and…

A: Formula: Contribution margin per unit = Total contribution margin / Number of units

Q: KYZ company is studying the profitability of a change in operation and has gathered the following…

A: Current Operations Anticipated Operation Sales Price (A) 22 16 Variable Cost (B) 12 10…

Q: Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and…

A: Lets understand the basics. When there is option of whether continue to manufacture product or…

Q: Carns Company Is considering eliminating Its Small Tools Division, which reported a loss for the…

A: Avoidable fixed costs are relevant fixed costs because they wont be incurred in case of no…

Q: XYZ Company is considering eliminating a department that has an annual contribution margin of…

A: Contribution  margin is the difference between the revenue and variable cost. And the profit of the…

Q: Sanra company is considering eliminating its mountain bike division, which reported an operating…

A: Segment reporting means taking a different division of the business as separate segments. Separate…

Q: A company sells its product at P30 per unit.Unit variable cost is P22 and total fixed costs total to…

A: SOLUTION- NEW VARIABLE COST PER UNIT AFTER SALES COMMISSION = P22+(30*5%) =P23.50 PER UNIT . NEW…

Q: A company sells its product at P30 per unit. Unit variable cost is P22 and total fixed costs total…

A: Solution: New variable cost per unit after sales commission = P22 + (30*5%) = P23.50 per unit New…

Q: Hyms Division of ASOP’s Company’s operating results include: controllable margin, P200,000; sales…

A: Solution: Income from New Project = Sales - Variable costs - Fixed costs = P100,000 - P60,000 -…

Q: 4,500,000 Sales (150,000 @ P30) Cost of Goods Sold: Materials 1,050,000 1,500,000 450,000 Labor…

A: the question is based on the concept for calculating operating profit. Operating profit is…

Q: XYZ company is studying the profitability of a change in operation and has gathered the following…

A: The company should accept the anticipated operations if the new operations give additional benefits…

Q: • Calculate the revenue needed to earn a target operating income of $102,000. • If fixed costs…

A: Hey, since there are multiple sub-parts questions posted, we will answer the first three questions.…