product line for several years. The most recent quarterly contribution format income statement for the bilge...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines Kataskeves, S.A. Income Statement-Bilge Punp For the Quarter Ended March 31 $ 470,000 Sales Variable expenses: Variable manufacturing expenses Sales commissions $ 137,000 50,000 15,000 Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipnent (no resale value) General factory overhead Salary of product-line manager Insurance on inventories 202,000 268, e00 22,000 110,000 31,ee0* 111,000 13,000 47,000t Purchasing department Total fixed expenses Net operating loss 334,000 5 (66,000) "Common costs allocated on the basis of machine-hours. tCommon costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line? product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines Kataskeves, S.A. Income Statement-Bilge Punp For the Quarter Ended March 31 $ 470,000 Sales Variable expenses: Variable manufacturing expenses Sales commissions $ 137,000 50,000 15,000 Shipping Total variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipnent (no resale value) General factory overhead Salary of product-line manager Insurance on inventories 202,000 268, e00 22,000 110,000 31,ee0* 111,000 13,000 47,000t Purchasing department Total fixed expenses Net operating loss 334,000 5 (66,000) "Common costs allocated on the basis of machine-hours. tCommon costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?
Expert Answer:
Answer rating: 100% (QA)
The financial advantage of discontinuing the bilge pump product line SNo Particulars Amount Amount R... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
What is the difference between a contribution format income statement and a traditional?
-
The most recent monthly contribution format income statement for Reston Company is given below: Management is disappointed with the company's performance and is wondering what can be done to improve...
-
The following is Alsatia Corporation's contribution format income statement for last month: Sales $1,400,000 Variable expenses $900,000 Contribution margin $500,000 Fixed expenses $300,000 Net...
-
If the end of the cord is pulled downward with speed v C , determine the angular velocities of pulleys A and B and the speed of block D. Assume that the cord does not slip on the pulleys. Given: VC =...
-
Three data entry specialists enter requisitions into a computer. Specialist 1 processes 30 percent of the requisitions, specialist 2 processes 45 percent, and specialist 3 processes 25 percent. The...
-
John died in 2016. What amount, if any, was included in his gross estate in each of the following situations: a. In 1997, John created a revocable trust, funded it with $400,000 of assets, and named...
-
Listed below are a number of research questions and hypotheses from actual published articles. For each hypothesis, identify the independent and dependent variable. a. The use of color in a Yellow...
-
The payroll register of Longboat Co. indicates $5,400 of social security withheld and $1,350 of Medicare tax withheld on total salaries of $90,000 for the period. Earnings of $10,000 are subject to...
-
[The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance...
-
A $1000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2026, was purchased on September 19, 2017, to yield 7% compounded semi-annually. What was the purchase price?
-
Phil and Sofia have been in a romantic relationship for five years. Their relationship is known to their respective families and friends. Everyone expects that sooner or later, they will get married....
-
In March of 2016, Alphabet (the parent of Google) announced they plan to sell their Boston Dynamics business. Boston Dynamics builds high end legged robots). Alphabet's executives said they wanted...
-
What is your interest rate? Credit Score Interest Chart Credit Score Average APR (New car) Average APR (Used car) Superprime: 781-850 2.40% 3.71% Prime: 661-780 3.56% 5.58% Nonprime: 601-660 6.70%...
-
The United States has the world's largest and strongest economy, like... ever in the history of humankind. How can one have resource scarcity in its current setting? Is it perhaps because people find...
-
Which model proposes that, while a country pursues economic development, income inequality will grow during, but once the country is adequately "developed" or "industrialized" economic inequality...
-
Washington D.C. implements a policy beginning in 2037 requiring firms to provide paid child leave. You want to study the effect of this policy on firm employment and average wages. You know that...
-
To reduce the total mass of the assembly shown in the figure, a new design is being considered in which the diameter of shaft BC will be smaller. Determine the smallest diameter of shaft BC for which...
-
Hardin Services Co. experienced the following events in 2016: 1. Provided services on account. 2. Collected cash for accounts receivable. 3. Attempted to collect an account and, when unsuccessful,...
-
Wymont Company produces a single product that requires a large amount of labor time. Overhead cost is applied on the basis of standard direct labor-hours. The company's condensed flexible budget for...
-
What is cost-plus pricing?
-
Name three approaches to break-even analysis. Briefly explain how each approach works.
-
Why does spreading feet apart help a surfer stay on the board?
-
Why will a projectile that moves horizontally at 8 km/s follow a curve that matches the curvature of Earth?
-
How much speed does a freely falling object gain during each second of fall?
Study smarter with the SolutionInn App