1. Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, the results of...
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1. Corn Crunchers has three product lines. Its only unprofitable line is Corn Nuts, the results of which appear below for 2010
Sales | $700,000 |
Variable expenses | 460,000 |
Fixed expenses | 300 000 |
Net loss | $(60,000) |
1. If this product line is eliminated, 30% of the fixed expenses can be eliminated. How much are the relevant costs in the decision to eliminate this product line?
(A). $90,000
(B). $550,000
(C). $670,000
(D). $760,000
2. A cost incurred in the past that cannot be changed by any future action is a (n)
(A). Opportunity cost
(B). Sunk cost
(C). Relevant cost
(D). Avoidable cost
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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