The Winter Products Division of American Sports Corporation produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities for June 2018: Sleds Saucers Sales in units 5,000 3,000 Selling price per unit $50 $20 Variable costs per unit $22 $9 Traceable fixed costs per month* $14,000 $36,000 Fixed common costs per month** $112,000 *Supervision cost 20%, Depreciation 40%, Operating Fixed Cost 40% **Fixed commons costs are allocated to each product If Saucer product is discontinued, supervision cost and 75% of operating fixed cost for Saucer products can be saved every month. Selling price and variable cost will remain same. Based on the information above information, please fill in the following blanks. (All answer should be numeric, number format: no comma, two decimal places 1234.56, NO $ sign before) Contribution Margin Lost if Saucer Product is discontinued: Fixed Cost Avoided:
The Winter Products Division of American Sports Corporation produces and markets two products for use in the snow: Sleds and Saucers. The following data were gathered on activities for June 2018:
Sleds
Saucers
Sales in units
5,000
3,000
Selling price per unit
$50
$20
Variable costs per unit
$22
$9
Traceable fixed costs per month*
$14,000
$36,000
Fixed common costs per month**
$112,000
*Supervision cost 20%,
**Fixed commons costs are allocated to each product
If Saucer product is discontinued, supervision cost and 75% of operating fixed cost for Saucer products can be saved every month. Selling price and variable cost will remain same.
Based on the information above information, please fill in the following blanks.
(All answer should be numeric, number format: no comma, two decimal places 1234.56, NO $ sign before)
Contribution Margin Lost if Saucer Product is discontinued:
Fixed Cost Avoided:
Step by step
Solved in 2 steps with 2 images
