$fill in the blank 2 Should Petoskey keep or drop Conway?
Q: A and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the partnership…
A: A and B form a partnership on January 1 of Year 1. Each makes a cash contribution to the…
Q: Williams Company’s Accounts Receivable Account has a balance of $900,000, and the Allowance for…
A: Allowance for bad debts is an estimated amount of uncollectible accounts receivable. The provision…
Q: Make T accounts using EXCEL for the following journal entries
A: We are given some journal entries which we need to post in T accounts Dr.…
Q: Prepare a Flexible budget for overheads on the basis of the following data. Ascertain the overhead…
A: In budgetary control, various budgets are prepared namely, purchase budget, sales budget, cash…
Q: Expert Lawn Services offers customers a reduced price for lawn care if they pay for 6 months service…
A: Advance Revenue Recognition: The receipt of an advance does not constitute sufficient proof of a…
Q: property. Assume half-year convention. Assume no section 179, but Joes does use the
A: Depreciation is a dimunition in the value of an asset on account of its…
Q: On November 16, Bell borrowed $10,000 from Graham and gave a 90-day, 12% note. On December 31, the…
A: As of the end of accounting period, the company that has lent money needs to record interest on a…
Q: e following selected trensacfions were completed by Niles Co during March of the current yean Niles…
A: Date Accounts and Explanation Debit ($) Credit ($) March 1 Inventory (10100x98% + 220)…
Q: Mr. J, Capital Office Equipment Accounts Payable 85 000.00 Notes Receivable 12 000.00 Notes Payable…
A: The income statement is prepared to record revenue and expenses of the current period and tells…
Q: O, Motor Van $450, Fixture sh at Bank $1,254, Cash ir V. Reagan $200.
A: Closing Stock = Opening Stock + Purchases - Sales. By using the above formula we are going to…
Q: A $10,000 bond (face value) with 76 interest payable quarterly is purchased for $7000. If the bond…
A: The return (whether it is a loss or gain) on a investment for a particular period of time span is…
Q: 9a.Harry and Sally formed the Evergreen partnership by contributing the following assets in exchange…
A: A partnership firm is, when two or more person come together to do a business and shares the ratio…
Q: Calculate ending inventory and cost of goods sold for the year, assuming the company uses…
A: Answer:
Q: Cash Budgets The management accountant at Genus Manufacturing Company, Karen Cranston, is in the…
A: A cash budget is a document produced to help a business manage their cash flow. A cash budget is…
Q: ANGEL Company has purchased raw materials amounting to P800,000 from its major supplier on February…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: annual demand for 100,000 bars to service customers. Each bar costs $5.00, and cost per order is…
A: economic order quantity is such quantity that minimizes the total cost that will be incurred in…
Q: Findell Corporation is considering two projects, A and B, and it has gathered the following…
A: The present value index or profitability index is calculated as ratio of present value of cash…
Q: Compute the sales of laptops using the naive forecasting method.
A: Month No of Toys Sold Forecast Forecast Error Absolute value of Forecast Error Squared…
Q: Larson, Inc., manufactures backpacks. Last year, it sold 105,000 of its basic model for $20 per…
A: Answer) Calculation of Larsen’s Estimated Sales Revenue for Coming Year Larsen’s Expected Sales…
Q: Change in amount between two years and percentages to be shown invidually for all lines
A: Formula: Change in amount = 2003 amount - 2002 Amount
Q: Coronado Industries had sales in 2021 of $5,698,400 and gross profit of $921,800. Management is…
A: Sales Budget- A sales budget is a plan that outlines the methods and strategies for forecasting…
Q: Cost of goods sold to be shown along with formula and answer? Purchases $ 30,526 Selling expense $…
A: Formula: Cost of goods sold = Beginning inventory + Purchases - Ending inventory
Q: Read the case study provided below and answer the questions that follow. COMFYCHAIRS LIMITED…
A: Absorption costing, often known as "full costing," is a managerial accounting approach for gathering…
Q: Well Company paid Being Company for merchandise with a $4,500, 90-day, 10% note dated December 11.…
A: GIVEN Well Company paid Being Company for merchandise with a $4,500, 90-day, 10% note dated…
Q: Currie Company has an opportunity to purchase a forklift to use in its heavy equipment rental…
A:
Q: (d) Current ratio enter the ratio rounded to 2 decimal places :1 (e) Accounts receivable…
A: Ratio analysis refers to the process of calculating various ratios, on the basis of various…
Q: Sunland, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are…
A: The question is related to discontinuing a product. The details are given.
Q: Explained and described the measurement aspects of accounting in relations to assets valuation and…
A: measurement is generally related to the valuation and recording and also the process of collecting…
Q: QUESTION 8 A company's unadjusted trial balance shows a debit balance of $30,000 in the allowance…
A: Solution: If allowance for doubtful accounts is having debit balance, it means actual bad debts…
Q: 15.4A The statements of financial position and additional information relating to Pennylane Ltd are…
A: Cash flow statement A cash flow statement is one of the important financial statements that depict…
Q: On January 1, 2019, the Business Info Company had capitalized costs of P6,000,000 for a new computer…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: 3. An Con any selis IIS
A: In Cost Volume Profit analysis we always try to see that how…
Q: his answ
A: Given as,
Q: What amount of money deposited 20 years ago at 4% interest would provide perpetual payment of Php…
A: An unending annuity can be defined as a perpetuity. That is payment of an equal amount of money at…
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800…
A: GIVEN Salaries and wages payable$1,700 Salaries and wages expense$1800 Utilities expense$22500…
Q: nmon Stock l-in-Capital in Excess of Par Value
A: Stockholders equity refers to the sum value of money invested by the owner in its business.
Q: ccount for the balance sheet
A: Given as,
Q: What do we mean by the optimal capital structure for a company
A: The answer is stated below: Note: Answering the first question as there are multiple…
Q: Mr Zoo is planning to set up a mini Zoo in Howick. The following relates to different pricing…
A: The contribution margin ratio is the percentage difference between a company's revenue and variable…
Q: Why is poverty related to infrastructure and service provision?
A: Poverty is a condition in which an individual or community lacks the financial resources and…
Q: s decided to spend P1,200,000 to provide facilities immediately and to provide P100,000 of capital…
A: Given: The initial amount = $5 million The spendable amount = $1.2 million The amount of capital…
Q: Calculate the maximum depreciation expense for the current year (ignoring 3179 and bonus…
A: Depreciation is writing down the value of asset as it is used in the business operation. The…
Q: Problem 8-2 (IAA) On October 1, 2021, Home Company issued to Security Bank a P6,000,000, 8-month,…
A: Note Payable: Note payable arises when an entity raises a note to third party instead of paying…
Q: Examined and describe the communication aspect of accounting in relation to assets valuation and…
A: Accounting Principles: Accounting principles are the principles and rules that organizations should…
Q: What is the purpose of analytical reviews in the audit of revenue cycle accounts? Please give an…
A: An analytical review is used by auditors to assess the reasonableness of account balances. A CPA…
Q: Analyz JReceivables The following information was taken from the annual reports of two high- end…
A: Solution: Part A) Net Credit Revenue / Accounts Receivable = Receivable Turnover Ratio Company A…
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800…
A: Formula: Net income = Total revenues - Total expenses.
Q: 1. Cash balance according to the company's records at August 31, $25,520. 2. Cash balance according…
A: Introduction: Bank Reconciliation statement: To reconcile the difference between bank book and cash…
Q: a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Royal…
A: Solution Concept Multi step income statement is the income statement where the operating and non…
Q: Required intormation [The following information applies to the questions displayed below.] Holmes…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
-
Keep-or-Drop Decision
Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows:
Alanson Boyne Conway Total Sales revenue $1,280 $185 $300 $1,765 Less: Variable expenses 1,115 45 225 1,385 Contribution margin $ 165 $140 $ 75 $ 380 Less direct fixed expenses: Depreciation 50 15 10 75 Salaries 95 85 80 260 Segment margin $ 20 $ 40 $ (15) $ 45 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold.
Assume that, each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped.
Assume that 20% of the Alanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer available from Petoskey, these customers would go elsewhere to purchase Alanson.
Required:
Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".
$fill in the blank 2
Should Petoskey keep or drop Conway?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $360 $1,825 Less: Variable expenses 1,115 45 252 1,412 Contribution margin $165 $140 $108 $413 Less direct fixed expenses: Depreciation 50 15 13 78 Salaries 95 85 120 300 Segment margin $20 $40 $(25) $35 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped. Required: CONCEPTUAL CONNECTION: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000"…Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $285 $1,750 Less: Variable expenses 1,115 45 200 1,360 Contribution margin $165 $140 $85 $390 Less direct fixed expenses: Depreciation 50 15 9 74 Salaries 95 85 112 292 Segment margin $20 $40 $(36) $24 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that, each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped. Assume that 20% of the Alanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer available…
- Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $405 $1,870 Less: Variable expenses 1,115 45 324 1,484 Contribution margin $165 $140 $81 $386 Less direct fixed expenses: Depreciation 50 15 12 77 Salaries 95 85 92 272 Segment margin $20 $40 $(23) $37 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped. Required: CONCEPTUAL CONNECTION: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000"…Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Alanson Boyne Conway Total Sales revenue $1,280 $185 $360 $1,825 Less: Variable expenses 1,115 45 288 1,448 Contribution margin $165 $140 $72 $377 Less direct fixed expenses: Depreciation 50 15 12 77 Salaries 95 85 84 264 Segment margin $20 $40 $(24) $36 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped. Required: Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example,…Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows: Line Item Description Torch Elk Walloon Total Sales revenue $1,280 $185 $315 $1,780 Less: Variable expenses 1,115 45 252 1,412 Contribution margin $165 $140 $63 $368 Less direct fixed expenses: Depreciation 50 15 10 75 Advertising 95 85 76 256 Segment margin $20 $40 $(23) $37 Direct fixed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that, each of the three products has a different marketing campaign whose advertising would be eliminated if the associated product were dropped. Assume that 30% of the Torch customers choose to buy from Charlevoix because it offers a full range of products, including Walloon. If Walloon were no longer available from Charlevoix, these customers…
- Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…Biblio Files CompanyContribution Margin Income StatementFor the Year Ended December 31, 20Y8 Sales $379,000 Variable costs: Manufacturing expense $151,600 Selling expense 15,160 Administrative expense 60,640 (227,400) Contribution margin $151,600 Fixed costs: Manufacturing expense $76,750 Selling expense 8,000 Administrative expense 10,000 (94,750) Operating income $56,850 Sales Mix Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type ofBookshelf Sales Priceper Unit Variable Costper Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called…Accounting Gosnell Company produces two products: squares and circles. The projected income for thecoming year, segmented by product line, follows:Squares Circles TotalSales P300,000 P2,500,000 P2,800,000Less: Variable expenses 100,000 500,000 600,000Contribution margin P200,000 P2,000,000 P2,200,000Less: Direct fixed expenses 28,000 1,500,000 1,528,000Product margin P172,000 P 500,000 P 672,000Less: Common fixedexpenses100,000Operating expenses P 572,000The selling prices are P30 for squares and P50 for circles.1. Compute the number of units of each product that must be sold for Gosnell Companyto break even.2. Assume that the marketing manager changes the sales mix of the two products sothat the ratio is three squares to five circles. Repeat Requirement 13. Refer to the original data. Suppose that Gosnell can increase the sales of squares withincreased advertising. The extra advertising would cost an additional P45,000, andsome of the potential purchasers of circles would switch to…
- A summary of HM Co's recent statement of profit or loss is given below: $'000 Revenue 10,123 Cost of sales (7,222) Gross profit 2,901 Expenses (999) Profit before interest and tax 1,902 Interest (1,000) Tax (271) Profit after interest and tax 631 70% of cost of sales and 10% of expenses are variable costs. What is HM Co's operational gearing?The follooving information relates to Snorbird Corporation Sales at the breakeven point P312.500 lotal foed expenses 250,000 et opetating income 150,000 what is Sncwbird s margin of safetyMatamad Inc. Provides you with the following data on its operation for analysis:Unit selling priceP40Variable costs and expenses per unit.P30Fixed cost and expenses per annum.P48,000REQUIRED:a. Contribution margin per unitb. Contribution margin percentagec. BEP sales volume (units)d. BEP peso salese. Peso sales with desired income of P9,000f. Peso sales with desired income P13,000 after 32% income tax