b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. A corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation t a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. Note: Round intermediate calculations to 2 decimal places. XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Sales Variable expenses Contribution margin Direct fixed expenses Common fixed expenses Operating income/loss Total Company Product B Product C 0 $ 0 $ 0 0 $ Required A 0 0 Required C > Sales Variable expenses Contribution margin Fixed expenses Operating income ANT Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 593,000 276,000 $ 317,000 280,000 $ 297,000 152,000 $ 145,000 167,000 $ 37,000 $ (22,000) Product B $ 123,000 51,000 $ 72,000 43,000 $ 29,000 Product C $ 173,000 73,000 $ 100,000 70,000 $ 30,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Direct fixed expenses Total Company $ 102,000 Product A $ 74,000 Product B $ 9,000 Product C $ 19,000 The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Sales Variable expenses Contribution margin Fixed expenses Operating income Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 593,000 276,000 $ 317,000 280,000 $ 297,000 152,000 $ 145,000 167,000 $ 37,000 $ (22,000) Product B $ 123,000 51,000 $ 72,000 43,000 $ 29,000 Product C $ 173,000 73,000 $ 100,000 70,000 $ 30,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Direct fixed expenses Total Company $ 102,000 Product A $ 74,000 Product B $ 9,000 Product C $ 19,000 The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the effect of the decision to discontinue product A on operating income? Operating income will by for the XYZ Company if it discontinues Product A. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Sales Variable expenses Contribution margin Direct fixed expenses Segment margin Common fixed expenses Operating income/loss Total Company EA Product A Product B Product C 0 0 0 0 0 $ 0 $ 0 0 0 Required B Required C b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. A corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation t a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. Note: Round intermediate calculations to 2 decimal places. XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Sales Variable expenses Contribution margin Direct fixed expenses Common fixed expenses Operating income/loss Total Company Product B Product C 0 $ 0 $ 0 0 $ Required A 0 0 Required C > Sales Variable expenses Contribution margin Fixed expenses Operating income ANT Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 593,000 276,000 $ 317,000 280,000 $ 297,000 152,000 $ 145,000 167,000 $ 37,000 $ (22,000) Product B $ 123,000 51,000 $ 72,000 43,000 $ 29,000 Product C $ 173,000 73,000 $ 100,000 70,000 $ 30,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Direct fixed expenses Total Company $ 102,000 Product A $ 74,000 Product B $ 9,000 Product C $ 19,000 The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Sales Variable expenses Contribution margin Fixed expenses Operating income Segmented Income Statement For the Year Ended December 31, 2022 Total Company Product A $ 593,000 276,000 $ 317,000 280,000 $ 297,000 152,000 $ 145,000 167,000 $ 37,000 $ (22,000) Product B $ 123,000 51,000 $ 72,000 43,000 $ 29,000 Product C $ 173,000 73,000 $ 100,000 70,000 $ 30,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Direct fixed expenses Total Company $ 102,000 Product A $ 74,000 Product B $ 9,000 Product C $ 19,000 The remaining fixed expenses are considered to be corporatewide expenses that have been allocated to each product line based on sales revenue. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C What will be the effect of the decision to discontinue product A on operating income? Operating income will by for the XYZ Company if it discontinues Product A. Required: a. What will be the effect of the decision to discontinue product A on operating income? b. Assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporatewide fixed expenses as described. c. Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. Complete this question by entering your answers in the tabs below. Required A Required B Required C Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement. XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2022 Sales Variable expenses Contribution margin Direct fixed expenses Segment margin Common fixed expenses Operating income/loss Total Company EA Product A Product B Product C 0 0 0 0 0 $ 0 $ 0 0 0 Required B Required C
Expert Answer:
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Posted Date:
Students also viewed these accounting questions
-
Dimensions of cross section: b = 6in, t = 0.5in, h = 12 in., h1 = 10.5 in., and V = 30 k. A wide-flange beam (see figure) having the cross section described below is subjected to a shear force V....
-
Dimensions of cross section: b = 220mm, t = 12 mm, h = 600mm, h1 = 570 mm, and V = 200 kN. A wide-flange beam (see figure) having the cross section described below is subjected to a shear force V....
-
In the circuit of Fig. 16-31, Find v and i for t > 0 and compare with results of Problems 16.41 and 16.42. Data from problem 16.41 In the circuit of Fig. 16-30, v(0) = 1.2 V and i(0) = 0.4 A. Find v...
-
Consider a corporate bond with a 10.5% coupon rate, paid semi-annually, $1000 par value and a current market price of $766.70. It matures in exactly 20 years. What is the yield to maturity (YTM) on...
-
List the strategies leaders can use to play a positive role in facilitating the change.
-
In a nuclear reaction, which of the following is not conserved? (a) Energy. (b) Momentum. (c) Electric charge. (d) Nucleon number. (e) None of the above.
-
a. Wildcat Oil Corporation drills an exploratory well during 2016 that finds oil, but not in commercially producible quantities at current oil prices. Since proved reserves are not found, Wildcat...
-
Prompt Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the companys cost analyst has determined that if a truck is driven 120,000 kilometres during...
-
ind all zeros, real and non- unction, including factors fo inter the zeros separated b
-
Required information PA5-3 Identifying Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries [LO 5-4, LO 5-5] [The following information applies to the...
-
Calculate the minimum kinetic energy that the carriage should possess at the top of the 15M diameter loop and the minimum height of release(h) of a roller coaster carriage to complete the loop.Mass...
-
A bank is considering some investment portfolio shifting.In doing so, the bank is considering selling $3,000,000 in 5 year county government bonds with a coupon interest of 3 percent, and purchasing...
-
Calculate the Young's modulus (in GPa) in the longitudinal direction of a unidirectional carbon fiber reinforced epoxy composite having 0.35 volume fraction of fibers. The Young's modulus of the...
-
The weight of a concrete column is 10.3 kN with a density of 2.30 g/cm3 . (a) Convert the weight from kN to N and the density from g/cm3 to kg/m3 . Note: 100 cm = 1 m. (b) Determine the mass of the...
-
1. What is Solomon Four-Group Design and where is it mostly used? 2. What are the assumptions of Solomon Four-Group Design? 3. What are the strengths and weaknesses of Solomon Four-Group Design? 4....
-
Establishing budgets and finding funding sources necessitate revisions of strategies, target audience and goals to be achieved A . True B . False
-
What types of inventory issues Starbucks might reflect upon at the end of each year? The mission of Starbucks is to inspire and nurture the human spiritone person, one cup, and one neighborhood at a...
-
What role does growth-need strength play in the job characteristics model?
-
Explain the difference between halo errors and recency errors in performance appraisal.
-
When is a team effective?
Study smarter with the SolutionInn App