Your Company plans to discontinue a department that has a contribution margin of $22,000 and $50,000 in fixed costs. Of the fixed costs, 42% cannot be eliminated. What is the effect of this discontinuance on net operating income?   A. decrease by $   7,000   B. increase by  $   1,000   C. decrease by $24,000   D. decrease by  $  1,000   E. increase by  $  7,000

Q: Rhein Manufacturing recorded operating data for its auto accessories division for the year. $750,000…

A: Given: Sales = $750,000 Contribution margin = $230,000 Total direct fixed costs = $90,000 Average…

Q: A company has fixed costs of $230,000 and breakeven sales of $1,600,000. Assuming no change in price…

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

Q: a.  Young Company budgets sales of $1,040,000, fixed costs of $53,800, and variable costs of…

A: Contribution margin refers to the amount that the company earned from selling goods more than its…

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…

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

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Q: The Coleman Company has two departments - 101 and 102. Data on the two departments for the most…

A: Solution Contribution margin of Department 102 = $2,625,000 - $1,125,000 = $1,500,000 Contribution…

Q: The management of Furrow Corporation is considering dropping product LO7E. Data from the company's…

A: While making  decision  fixed costs are  not relevant  and should not be considered.  Avoidable…

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

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Q: The management of Furrow Corporation is considering dropping product LO7E. Data from the company's…

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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: A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of…

A: Lets start with basic understanding. Contribution margin ratio shows the how much contribution is…

Q: A company operates with two departments: Department AA and Department BB. The manager is considering…

A:

Q: Georgia Co. plans to discontinue a department that has a $49,000 contribution margin and $96,000 of…

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Q: Your Company is considering discontinuing a product. Data from the company's accounting system…

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Q: The following information relates to Your Corporation. It produced and sold 50,000 units last month.…

A: Contribution margin: Contribution margin represents the aggregate value of sales revenue present…

Q: f) Assume that as a result of reorganizing the production process, the management of Benoit…

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Q: Frieden’s management is considering a major upgrade to the manufacturing equipment, which would…

A: The contribution income statement is the statement that shows the contribution margin and the…

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

A: The contribution margin is calculated as difference between sales and variable costs.  The break…

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: Sales 200,000 Variable expenses 140,000 Fixed expenses 100,000

A: Solution: Contribution margin lost = Sales - variable expense = 200000 - 140000 =60,000

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: Hughes Printing and Publishing has sales of $1,350,000. Its variable costs are $597,000, fixed costs…

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Q: Ortega Interiors provides design services to residential and commercial clients. The residential…

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Q: Assume that as a result of reorganizing the production process, the management of Benoit…

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Q: A company has three product lines, one of which has the following results: Sales $214000 Variable…

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Q: Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and…

A: Lets understand the basics. When there is option of whether continue to manufacture product or…

Q: Carns Company Is considering eliminating Its Small Tools Division, which reported a loss for the…

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Q: XYZ Company is considering eliminating a department that has an annual contribution margin of…

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

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

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: • Calculate the revenue needed to earn a target operating income of $102,000. • If fixed costs…

A: Hey, since there are multiple sub-parts questions posted, we will answer the first three questions.…