Question: A segment has the following data: Sales $710000 Variable expenses 300000 Fixed expenses 550000 What will be the incremental effect on net income if this

A segment has the following data:

Sales $710000
Variable expenses 300000
Fixed expenses 550000

What will be the incremental effect on net income if this segment is eliminated, assuming the segments fixed expenses can be allocated to profitable segments?

$410000 increase

$5000 decrease

Cannot be determined from the data provided

$410000 decrease

Swifty Corporation manufactures and sells solar chargers for $50 each. Variable costs are $40 per unit, and fixed costs total $120000. How many solar chargers must Swifty sell to earn a net income of $300000?

54000.

42000.

25500.

7500.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!