Question: Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $103,000. Division sales for the year

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $103,000. Division sales for the year were $1,490,000 and its variable costs were $1,355,000. The fixed costs of the division were $400,000. If the kitchen division is dropped, 30% of the fixed costs allocated it could be eliminated. The impact on Carnss operating income from eliminating the small tools division would be:

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!

James Hayes owns 370 shares of Ohio Utility preferred stock. If this preferred stock issue pays $2.80 per share, what is the total dollar amount Mr. Hayes will receive in one year?

27 Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $100,000. Division sales for the year were $1,460,000 and its variable...

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $100,000. Division sales for the year were $1,460,000 and its variable costs...

16- Wren Pork Company uses the value basis of allocating joint costs in its production of pork products. Relevant information for the current period follows: Product Pounds Price/lb. Loin chops 3,000...

1. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four...

Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 8 standard units per hour or 4 premier units per hour and it...

25 Rosie's Company has three products, P1, P2, and P3. The maximum Rosie's can sellis 74,000 units of P1, 51,000 units of P2, and 39,000 units of P3. Rosie's has limited production capacity of 36,000...

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $85,000. Division sales for the year were $1,310,000 and its variable costs...

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $93,000. Division sales for the year were $1,390,000 and its variable costs...

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $ 9 6 , 0 0 0 . Division sales for the year were $ 1 , 4 2 0 , 0 0 0 and its...

Carns Company is considering eliminating its small tools division, which reported an operating loss for the recent year of $91,000. Division sales for the year were $1,370,000 and its variable costs...

The owner of the Nordsee restaurant chain that has several locations in Bremen, Germany wants to assess the freshness of the meat used in their burgers and has requested your expertise for the task....

Does Chebyshevs Inequality provide useful information when K = 1? Explain why or why not.

write a little introduction on material management as it relates to wilmar oleo north america

An axial centric force of magnitude P = 500 kN is applied to the composite block shown by means of a rigid end plate. Knowing that h =12 mm, a) Draw the free body diagram of rigid end plate [1 mark]...

Q2 . a) Determine the reactions at the two supports. [4 marks] b) Obtain the shear force equations for the three sections of the beam. [9 marks] c) Obtain the bending moment equations for the three...

By what factor would a scuba diver's lungs expand if she ascended rapidly to the surface from a depth of 134.5 ft without inhaling or exhaling? If an expansion factor greater than 1.65 causes lung...

3. The position of a particle of mass M is given by the following equations: X= A + Bt -Ct2; Y = D + Et -F cos(Gt); Z = H+ Fsin(Gt) where A, B, C, D, E, F, G, and H are all constants. a) Find the...

Capture Planning Statement of work Project: Loyalist college to source security service for Loyalist College property and staff Students are responsible for a statement of work for a contract that...

In - class case study, followed by 6 questions. Your answers to all questions are to focus on Sleepyhead s practices and processes, and its move to Ohinewai in North Waikato

What do you believe was the cause of the turnover problem?

What might be some limitations of at will employment from the companys and employees perspectives?

Interpret a turnover rate of 200 percent. What does it mean? (Hint: Refer to the HR By the Numbers Feature for the formula as a guide.)