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mework i A ant Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: rences Sales Variable costs Contribution margin. Fixed costs allocated to each product line. Operating profit (loss) Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? 1 Complete this question by entering your answers in the tabs below. Required A Required B Revenue Less: Variable costs Contribution margin Green Beans $ 82,500 57,600 $ 24,900 10,180 $ 14,720 Less: Fixed costs Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Operating profit (loss) Status Quo Saved Alternative: Drop Sweet Peas Sweet Peas $ 110,000 101,400 $8,600 13,840 $ (5,240) Tomatoes $ 129,700 106,300 $ 23,400 17,360 $ 6,040 Difference

mework i A ant Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: rences Sales Variable costs Contribution margin. Fixed costs allocated to each product line. Operating profit (loss) Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? 1 Complete this question by entering your answers in the tabs below. Required A Required B Revenue Less: Variable costs Contribution margin Green Beans $ 82,500 57,600 $ 24,900 10,180 $ 14,720 Less: Fixed costs Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Operating profit (loss) Status Quo Saved Alternative: Drop Sweet Peas Sweet Peas $ 110,000 101,400 $8,600 13,840 $ (5,240) Tomatoes $ 129,700 106,300 $ 23,400 17,360 $ 6,040 Difference

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 5EA: Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling...
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nework Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: 0 rences Mc Graw Hill rtly cloudy Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Complete this question by entering your answers in the tabs below. Required A Required B Revenue Less: Variable costs Contribution margin Less: Fixed costs Green Beans $ 82,500 57,600 $ 24,900 10, 180 $ 14,720 Operating profit (loss) Status Quo Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Alternative: Drop Sweet Peas Q Search Saved < Prev Sweet Peas $ 110,000 101,400 $ 8,600 13,840 $ (5,240) Difference Tomatoes $ 129,700 106,300 $ 23,400 17,360 $ 6,040 9 of 12 Next > ?
Transcribed Image Text:nework Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: 0 rences Mc Graw Hill rtly cloudy Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Complete this question by entering your answers in the tabs below. Required A Required B Revenue Less: Variable costs Contribution margin Less: Fixed costs Green Beans $ 82,500 57,600 $ 24,900 10, 180 $ 14,720 Operating profit (loss) Status Quo Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Alternative: Drop Sweet Peas Q Search Saved < Prev Sweet Peas $ 110,000 101,400 $ 8,600 13,840 $ (5,240) Difference Tomatoes $ 129,700 106,300 $ 23,400 17,360 $ 6,040 9 of 12 Next > ?
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