The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line...

 

Transcribed Image Text:

The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Light Medium Dark Roast Roast Roast Sales $654,000 $895,000 $277,000 Cost of goods sold (272,000) (328,000) (147,000) Gross profit $382,000 $567,000 $130,000 Selling and administrative expenses (287,000) (344,000) (149,000) Operating income (loss) $95,000 $223,000 $(19,000) Fixed costs are 36% of the cost of goods sold and 16% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Dark Roast line were discontinued. a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Differential Analysis Report Light Medium Dark The condensed product-line income statement for Porcelain Tableware Company is as follows: PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Light Medium Dark Roast Roast Roast Sales $654,000 $895,000 $277,000 Cost of goods sold (272,000) (328,000) (147,000) Gross profit $382,000 $567,000 $130,000 Selling and administrative expenses (287,000) (344,000) (149,000) Operating income (loss) $95,000 $223,000 $(19,000) Fixed costs are 36% of the cost of goods sold and 16% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Dark Roast line were discontinued. a. Prepare a differential analysis report for all three products. PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Differential Analysis Report Light Medium Dark

Answer rating: 100% (QA)

PORCELAIN TABLEWARE COMPANY ProductLine Income Statement Differential Analysis Report Light Roast Me... View the full answer