Prepare a differential cost schedule b. Should Cotrone drop the Strawberry product line?

Q: Naumann Corporation produces and sells a single product. Data concerning that product appear below:…

A: Computation of Current net operating income: Particulars Amount Sales (1400*$230) $322,000…

Q: Harrow, Inc. is currently selling 153,000 units of its product at $18 per unit, with variable costs…

A: Increase in sales ( In units ) = 153,000 units x 7% = 10,710 units  Contribution per unit = $18 -$9…

Q: Scott Incorporated has been in business for several months.  Because of increased competition in the…

A: Break-even analysis is a technique widely used by production management. It helps to determine the…

Q: Coronado Machines has four product lines, one of which reflects the following results: Sales…

A: Avoidable fixed costs = Total Fixed costs x 40% = 111000 x 40% = $44,400

Q: Segmented income statements appear as follows:   Product Original   Strawberry   Orange Sales $…

A: A differential cost schedule is prepared in order to determine the difference in cost if one…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: Every company's aim will be to increase the profitability of the company. The profitability will be…

Q: Data concerning Dorazio Corporation's single product appear below: Percent of Per Unit Sales Selling…

A: Solution: Contribution margin from increased sales units and loss of contribution margin on existing…

Q: Luke Corporation produces a variety of products, each within their own division. Last year, the…

A: High-Low Method Highest level of activity and lowest level of activity   is identified and  total…

Q: XYZ Company is facing changes in its cost structure so that fixed costs will decrease from $800,000…

A: Net income can be defined as the difference between total revenues and total expenses. Expenses can…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: We need to do here the marginal cost benefit analysis where we will calculate the the actual benefit…

Q: Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: aughn Machines has four product lines, one of which reflects the following results: Sales $220000…

A: The net income by variable costing method is calculated by deducting the variable cost and fixed…

Q: Luke Corporation produces a variety of products, each within their own division. Last year, the…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: If the Mandarin store is closed, what is the incremental effect on profit for Marshal Costumes?

A: Net income: Net income is the excess amount of revenue after deducting all the expenses of a…

Q: Manor Homes plans to discontinue a segment which last year generated a contribution margin of…

A: The fixed cost which is not avoidable is the costs that are incurred even if the segment is…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: It is assumed that: The selling price is $6 per unit at 10,000 units. Variable Cost is $20,000.

Q: Page Village sells home, and office furniture. Currently the home product line takes up…

A: Net income is the amount of money earned by an entity from its business. It include all the revenues…

Q: Luke Corporation produces a variety of products, each within their own division. Last year, the…

A: Given Total Cost = $1,47,70,539 Total Units = 29,15,950

Q: Bryson​ Company's western​ territory's forecasted income statement for the upcoming year is as​…

A: The differential analysis is performed when two alternatives are available with the organisation.

Q: When making the determination of whether or not a selling price should be increased there are many…

A: For a cost-volume profit analysis, we need to first determine the unit selling price and variable…

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: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: Profit = Sales - Expenses

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: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…

A: Differential cost is the cost, which is defined as the difference among the cost of two alternative…

Q: The market price for a product has been $50 per unit, but competitive pressures have reduced the…

A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…

Q: implemented and production decreased to 45,000 units? a- It will stay the same. b -It will increase…

A: The correct answer is :-  b. It will increase

Q: a. Compute the CM ratio and breakeven points in dollars. b. Compute the operating leverage at last…

A: ANSWER: First let us metion the given values in question relating to product A of last year: Sales…

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

A: Cost that changes irrespective of production level are called fixed costs whereas costs that changes…

Q: XYZ Company's single product has a selling price of $25 per unit. Last year the company reported…

A: Old selling price =$25Contribution Margin Ratio =40%Contribution per unit =$25 ×40%=$10Variable cost…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: Cost of reduction of selling price on improved units  Improved units = 10000 units x 40% = 4000 Cost…

Q: break-even point

A: A Break-even point is a point where the company is in a position of no profit and no loss. This…

Q: Company XYZ produces and sells scientific calculators . The company is currently producing and…

A: Profit is the residual amount left after deduction of fixed costs from contribution amount…

Q: Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations…

A: Variable costs are the costs which changes with the variation in output and vice versa to this,…

Q: Iakisthike, LLC has two lines of products, Regular and Super, and is thinking about discontinuing…

A: Total fixed manufacturing cost = [$140,000 - (7,000 x $18)] + [$375,000 - (3,000 x $109)] = $62,000…

Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

A: In order to determine the contribution margin per unit, the variable cost per unit are required to…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: The question is multiple choice question.The question is related to Marginal Costing.  Required…

Q: Fido Company has three segments, one of which is unprofitable. The Duchess Doggy Biscuit segment had…

A: Calculate the amount of net loss after elimination:

Q: Lusk Corporation produces and sells 14700 units of Product X each month. The selling price of…

A: In this question we are required to find what is advantage or disadvantage if product X will…

Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…

A: The break even point is the point at which the total cost and total revenue are equal, which means…

Q: Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The…

A:

Q: Naumann Corporation produces and sells a single product. Data concerning that product appear below:…

A: Formula: Net operating income = Revenues - variable expenses - fixed costs. Deduction of variable…

Q: Pottery Unlimited has two product lines:  cups and pitchers.  Income statement data for the most…

A: If $29,679 in fixed costs will be eliminated by dropping the Pitcher line, then the operating income…

Q: In an attempt to improve the company's profit performance, management is considering a number of…

A: Marginal costing is a technique of costing which is used to determine the marginal cost and to know…

Q: Astro Company sold 25,000 units of its only product and reported income of $117,600 for the current…

A: Sales price per unit = Sales / Number of units Variable cost per unit = Variable costs / Number of…

Q: Company XYZ produces and sells scientific calculators. The company is currently producing and…

A: Variable cost is defined as a cost influenced with changes in activity of production whereas fixed…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.