THALASSINES KATASKEVES, SA Income Statement-Bilge Pump For the Quarter Ended March 31 Sales €950,000 Less: Variable expenses: Variable manufacturing expenses €340,000 Sales commissions 46,000 Shipping 14,000 Total variable expenses 400,000 Contribution margin 550,000 Less: Fixed expenses: Advertising 290,000 Depreciation of equipment (no resale value) 90,000 General factory overhead 115,000* Salary of product-line manager 38,000 Insurance on inventories 18,000 Purchasing department expenses 65.000' Total fixed expenses 616.000 Net operating loss E166.000) "Common costs allocated on the basis of machine-hours "Common costs allocated on the basis of sales dollars The currency in Greece is the euro, denoted by €. The discontinuance of the bilge pump product line would not affect sales of other produ lines and would have no noticeable effect on the company's total general factory overhead or total purchasing department expenses.

THALASSINES KATASKEVES, SA Income Statement-Bilge Pump For the Quarter Ended March 31 Sales €950,000 Less: Variable expenses: Variable manufacturing expenses €340,000 Sales commissions 46,000 Shipping 14,000 Total variable expenses 400,000 Contribution margin 550,000 Less: Fixed expenses: Advertising 290,000 Depreciation of equipment (no resale value) 90,000 General factory overhead 115,000* Salary of product-line manager 38,000 Insurance on inventories 18,000 Purchasing department expenses 65.000' Total fixed expenses 616.000 Net operating loss E166.000) "Common costs allocated on the basis of machine-hours "Common costs allocated on the basis of sales dollars The currency in Greece is the euro, denoted by €. The discontinuance of the bilge pump product line would not affect sales of other produ lines and would have no noticeable effect on the company's total general factory overhead or total purchasing department expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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