Homework Help is Here – Start Your Trial Now!
Business
Accounting
Calculator Print Item Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,000 $90,100 $27,000 Cost of goods sold (26,900) (32,300) (14,300) Gross profit $38,100 $57,800 $12,700 Selling and administrative expenses (29,200) (34,400) (15,300) Operating income (loss) $8,900 $23,400 $(2,600) Fixed costs are 12% of the cost of goods sold and 45% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers (Alternative 1) (Alternative 2) (Alternative 2) Differential Effects Continue Mufflers 27,000 s -27,000 Revenues. Costs: -12,584 12,584 Variable cost of goods sold 8.415 -8,415 Variable selling and admin. expenses -8,601 118.601. Fixed costs $39,398 x s -8,601 9 24 -47,999 Profit (Loss) gation colua olete table Feenhark

Calculator Print Item Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,000 $90,100 $27,000 Cost of goods sold (26,900) (32,300) (14,300) Gross profit $38,100 $57,800 $12,700 Selling and administrative expenses (29,200) (34,400) (15,300) Operating income (loss) $8,900 $23,400 $(2,600) Fixed costs are 12% of the cost of goods sold and 45% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers (Alternative 1) (Alternative 2) (Alternative 2) Differential Effects Continue Mufflers 27,000 s -27,000 Revenues. Costs: -12,584 12,584 Variable cost of goods sold 8.415 -8,415 Variable selling and admin. expenses -8,601 118.601. Fixed costs $39,398 x s -8,601 9 24 -47,999 Profit (Loss) gation colua olete table Feenhark

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....
See similar textbooks
icon
Related questions
Question
100%
Calculator Print Item Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,000 $90,100 $27,000 Cost of goods sold (26,900) (32,300) (14,300) Gross profit $38,100 $57,800 $12,700 Selling and administrative expenses (29,200) (34,400) (15,300) Operating income (loss) $8,900 $23,400 $(2,600) Fixed costs are 12% of the cost of goods sold and 45% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers (Alternative 1) (Alternative 2) (Alternative 2) Differential Effects Continue Mufflers 27,000 s -27,000 Revenues. Costs: -12,584 12,584 Variable cost of goods sold 8.415 -8,415 Variable selling and admin. expenses -8,601 118.601. Fixed costs $39,398 x s -8,601 9 24 -47,999 Profit (Loss) gation colua olete table Feenhark
Transcribed Image Text:Calculator Print Item Differential Analysis for a Discontinued Product The condensed product-line income statement for Rhinebeck Company for the month of October is as follows: Rhinebeck Company Product-Line Income Statement For the Month Ended October 31 Hats Gloves Mufflers Sales $65,000 $90,100 $27,000 Cost of goods sold (26,900) (32,300) (14,300) Gross profit $38,100 $57,800 $12,700 Selling and administrative expenses (29,200) (34,400) (15,300) Operating income (loss) $8,900 $23,400 $(2,600) Fixed costs are 12% of the cost of goods sold and 45% of the selling and administrative expenses. Rhinebeck Company assumes that fixed costs would not be materially affected if the Gloves line were discontinued. a. Prepare a differential analysis dated October 31 to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue (Alt. 1) or Discontinue (Alt. 2) Mufflers October 31 Discontinue Mufflers (Alternative 1) (Alternative 2) (Alternative 2) Differential Effects Continue Mufflers 27,000 s -27,000 Revenues. Costs: -12,584 12,584 Variable cost of goods sold 8.415 -8,415 Variable selling and admin. expenses -8,601 118.601. Fixed costs $39,398 x s -8,601 9 24 -47,999 Profit (Loss) gation colua olete table Feenhark
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS