Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented...
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Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Total $765,000 523.000 242,000 132.000 $110.000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $125,000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) $105,000 $103,000 $140,000 Wood $500,000 325,000 175,000 75,000 $100,000 Aluminum $200,000 140.000 60,000 35.000 $ 25.000 Hard Rubber $65,000 58.000 7,000 22.000 $(15.000) Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Total $765,000 523.000 242,000 132.000 $110.000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $125,000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) $105,000 $103,000 $140,000 Wood $500,000 325,000 175,000 75,000 $100,000 Aluminum $200,000 140.000 60,000 35.000 $ 25.000 Hard Rubber $65,000 58.000 7,000 22.000 $(15.000)
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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