Manor Homes plans to discontinue a segment which last year generated a contribution margin of $65,000 and incurred $40,000 in fixed costs. If the segment is discontinued, half of the fixed costs will not be avoided. If Manor Homes decides to discontinue this segment the overall effect on profits will be: - a decrease of $65,000 - a decrease of $25,000 - a decrease of $45,000 - an increase of $45,000

Q: Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the…

A: Variable costs = $563,712 - ($563,712*50%) Variable costs = $281,856   Fixed costs = $184,000 +…

Q: Last year a local restaurant realized sales of $290,000 with fixed costs of $130,000 and total…

A: Break even sales: Sales at which there will be no profit or loss. The restaurant can recover fixed…

Q: [The following information applies to the questions displayed below.] Astro Co. sold 20,000 units of…

A:

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 relates to next year’s projected operating results of the ARO Division of…

A: Solution : Given Contribution margin P1,500,000 Fixed expenses 1,700,000 Net…

Q: Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens…

A: Answer:

Q: [The tollowing Astro Co. sold 20,800 units of its only product and incurred a $56,672 loss (ignoring…

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

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

A: Given, Contribution lost = $90,000 Savings in fixed cost = 60% of $130,000

Q: Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the…

A: Contribution margin is calculated as excess of sales revenue over variable expenses.

Q: he condensed income statement for a business for the past year is as follows:     Product…

A: Product A is currently providing a loss of $ 25,000 to the company. It is because its total costs…

Q: Gion Company is considering eliminating its windows division, which reported an operating loss for…

A: Operating income is the income earned through day-to-day business operations. Further, a business…

Q: Rivera Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: ccC Company produces and sells 8,000 units of Product C each year. Each unit of product sells for…

A: Formula: Operating income = Avoidable fixed cost - decrease in contribution margin

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: Kahn Corporation (a multi-product company) produces and sells 8,000 units of Product X each year.…

A: In the decision making question of elimination of a product or not, savings in avoidable fixed costs…

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

A: Profit of the company can be calculated by deducting total costs that are variable costs and fixed…

Q: Company XYZ is currently operating with a 65% contribution margin. The company is planning an…

A: Increase in contribution=Increased sale×Contribution margin=$10,000×65%=$6,500

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Profit = Sales - Variable Cost - Fixed Cost

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: Although Allen Company has not reported a profit in five years, the company is improving. This year…

A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Net profit is calculated by deducting fixed costs from the contribution margin amount

Q: The condensed income statement for a business for the past year is as follows:…

A: When a business decision to be made on discontinuance then have to consider the impact of…

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: Contribution Margin of Walls Corporation, Consumer division is Rs. 1900,000 and the fixed expenses…

A: Contribution means the difference between the selling price and variable cost. Fixed cost remain…

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

A: Contribution margin shows the margin of sales revenue after deducting variable costs of the product

Q: A company has five product lines, one of which has Fixed expenses of $173,657 and a Net loss of…

A: Segment Reporting; When a company's operating segments are reported in the financial statements that…

Q: A study has been conducted to determine if one of the departments in Your Company should be…

A: Calculate net loss from the department (division): Net loss=Contribution-Fixed…

Q: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: Contribution margin= Contribution/ Sales Contribution= Sales-Variable cost

Q: Phan Company has not reported a profit in five years. This year the company would like to narrow its…

A: Given that: Net Loss = $7500 Selling price per unit = $36.50 Variable costs per unit = $24 Fixed…

Q: Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the…

A: Selling price = Sales amount  / units Selling price = $ 704,640 / 19400 Selling price = $ 36.32 per…

Q: income for the current year that will result from the discontinuance of Product T?

A: Evaluation of decision-making when product T is discontinued is showed below and net income / loss…

Q: Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated…

A: When a cost of doing business is constant regardless of how many goods and services are produced or…

Q: Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated…

A: Avoidable  fixed costs are  costs savings  from discontinuing  segment

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: [The following information applies to the questions displayed below.] Astro Co. sold 19,200 units of…

A:

Q: nfield company is considering eliminating its backpack division, which reported an operating loss…

A: Solution: Loss if division continue  (42,700) Loss if division dropped ($534,000 x 60%)…

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: Company XYZ is currently operating with a 60% contribution margin. The company is planning an…

A: given that, Increase in sales = $15000 Contribution margin ratio = 60% Fixed cost increase by $2500…

Q: Lafayette Corp. is considering eliminating its mountain bike division, which reported an operating…

A: Net income/Loss = Sales - Variable costs - Fixed costs

Q: BC Co. plans to discontinue a department that has a contribution margin of P60,000 and P100,000 in…

A: Net Operating Income is calculated by deducting the operating expenses from the operating income of…

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: Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year…

A: Given: Contribution margin of Leashes =$30000Fixed cost eliminated by dropping Leashes =$21584

Q: The condensed income statement for Hayden Corp. for the past year is as follows:   Product…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Based on the segment income statement below, Chips, Inc. is considering eliminating its Barbecue…

A: Solution:- Calculation of profitability If Barbecue Division were eliminated as follows:-

Q: [The following information applies to the questions displayed below.] Astro Co. sold 19,200 units of…

A: