Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000 9,000 12,000 31,000 Variable costs 4,500 7,000 6,000 17,500 Contribution Margin 5,500 2,000 6,000 13,500 Fixed costs 3,500 6,000 3,000 12,500 Net income 2,000 (4,000) 3,000 1,000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income? Bubblemania has three product lines - A, B, and C. A B C Total Sales $10,000 9,000 12,000 31,000 Variable costs 4,500 7,000 6,000 17,500 Contribution Margin 5,500 2,000 6,000 13,500 Fixed costs 3,500 6,000 3,000 12,500 Net income 2,000 (4,000) 3,000 1,000 Product line B appears unprofitable, and management is considering discontinuing the line. How would the discontinuation of Product line B affect net income?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Multiple Choice Questions 1. The Beach Hut sells hotdogs for $2 each. The costs associated with each hotdog are estimated to be $1.00 of variable costs and $0.35 of fixed overhead costs. A summer...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The Best Buy Co. Inc. 10-K report has the following footnote related to leasing activities. The future minimum lease payments under our capital and operating leases by fiscal year (not includ- ing...
-
What were some of the signs that the music-based videogames had reached maturity.
-
This design is made from 1 blue circle, 4 orange circle and 16 green circles. Th circles touch each other. Given that the radius of each green circle is 1 unit, find the exact radius of a. The orange...
-
A company expects to sell 1000 units per month of a new product but there is uncertainty as to both the unit selling price and the unit variable cost of the product. The following estimates of...
-
Collins Computer Timeshare Company entered into the following transactions during May 2014. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $3,000 cash for May...
-
Cost data for the "Premier" skateboard follow below. The company sells the "Premier" model for $94 each, and produced and sold 5,800 of this style during July. There were no beginning or ending...
-
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2016, of a five-period annual annuity of $5,300 under each of the...
-
Why is the adjusted present value approach appropriate for situations with a changing capital structure?
-
What are spontaneous liabilities?
-
What are four methods for estimating a targets value?
-
What are some reasons that net PP&E might grow proportionally to sales, and what are some reasons that it might not?
-
Do the states play a role in merger regulation, or is it all done at the national level? Explain.
-
Marlow Company makes bulk quantities of cleaning fluids. They currently sell 1,200 containers a month at a price of $23.75 per unit. If they add a new scent, they could charge $25 per unit for the...
-
For a Poisson process of rate , the Bernoulli arrival approximation assumes that in any very small interval of length , there is either 0 arrivals with probability 1- or 1 arrival with probability ....
-
Think of some individuals who you believe to be really exceptional leaders. What, if anything, do they have in common? Think of some individuals who you believe to be truly poor leaders. What, if...
-
Have you ever known people who were successful leaders in one situation and failures in another? Why do you think this happened?
-
Summarize PathGoal Leadership Theory. What theories of motivation can you tie to the assumptions of the model?
Study smarter with the SolutionInn App