Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has...
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Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has a net loss of $22,000 from sales $200,000, variable costs $164,000, and fixed costs $58,000. If the Star Premium line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Star Premium line should be eliminated. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). • If the amount is zero, enter 0. Continue or Eliminate Net Income Continue Eliminate Increase (Decrease) $ Sales $ $ $. Variable Costs %24 Contribution Margin $ Fixed Costs Net Income/(Loss) %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has a net loss of $22,000 from sales $200,000, variable costs $164,000, and fixed costs $58,000. If the Star Premium line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Star Premium line should be eliminated. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). • If the amount is zero, enter 0. Continue or Eliminate Net Income Continue Eliminate Increase (Decrease) $ Sales $ $ $. Variable Costs %24 Contribution Margin $ Fixed Costs Net Income/(Loss) %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
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