Foremost Footwear Inc. Product-Line Income Statement For the Year Ended April 30, 20Y7 Children's Shoes Men's Shoes Women's Shoes Total Sales $165,000 $300,000 $500,000 $965,000 Costs of goods sold: Variable costs $105,000 $150,000 $220,000 $475,000 Fixed costs 32,000 60,000 120,000 212,000 Total cost of goods sold $137,000 $210,000 $340,000 $687,000 Gross profit $28,000 $90,000 $160,000 $278,000 Selling and adminstrative expenses: Variable selling and admin. expenses $21,000 $45,000 $95,000 $161,000 Fixed selling and admin. expenses 17,000 20,000 25,000 62,000 Total selling and admin. expenses $38,000 $65,000 $120,000 $223,000 Income (loss) from operations $(10,000) $25,000 $40,000 55,000 If the Children Shoe's are discontinued, the company's income would decrease by $fill in the blank 3
Foremost Footwear Inc. Product-Line Income Statement For the Year Ended April 30, 20Y7 Children's Shoes Men's Shoes Women's Shoes Total Sales $165,000 $300,000 $500,000 $965,000 Costs of goods sold: Variable costs $105,000 $150,000 $220,000 $475,000 Fixed costs 32,000 60,000 120,000 212,000 Total cost of goods sold $137,000 $210,000 $340,000 $687,000 Gross profit $28,000 $90,000 $160,000 $278,000 Selling and adminstrative expenses: Variable selling and admin. expenses $21,000 $45,000 $95,000 $161,000 Fixed selling and admin. expenses 17,000 20,000 25,000 62,000 Total selling and admin. expenses $38,000 $65,000 $120,000 $223,000 Income (loss) from operations $(10,000) $25,000 $40,000 55,000 If the Children Shoe's are discontinued, the company's income would decrease by $fill in the blank 3
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 26BEA
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| Foremost Footwear Inc. Product-Line Income Statement For the Year Ended April 30, 20Y7 |
||||||||||
| Children's Shoes | Men's Shoes | Women's Shoes | Total | |||||||
| Sales | $165,000 | $300,000 | $500,000 | $965,000 | ||||||
| Costs of goods sold: | ||||||||||
| Variable costs | $105,000 | $150,000 | $220,000 | $475,000 | ||||||
| Fixed costs | 32,000 | 60,000 | 120,000 | 212,000 | ||||||
| Total cost of goods sold | $137,000 | $210,000 | $340,000 | $687,000 | ||||||
| Gross profit | $28,000 | $90,000 | $160,000 | $278,000 | ||||||
| Selling and adminstrative expenses: | ||||||||||
| Variable selling and admin. expenses | $21,000 | $45,000 | $95,000 | $161,000 | ||||||
| Fixed selling and admin. expenses | 17,000 | 20,000 | 25,000 | 62,000 | ||||||
| Total selling and admin. expenses | $38,000 | $65,000 | $120,000 | $223,000 | ||||||
| Income (loss) from operations | $(10,000) | $25,000 | $40,000 | 55,000 |
If the Children Shoe's are discontinued, the company's income would decrease by $fill in the blank 3.
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