For the third quarter of 2021, Anthony-Mason Company has four manutacturing segnents. The total income from...

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For the third quarter of 2021, Anthony-Mason Company has four manutacturing segnents. The total income from manufacturing is $183,000. The results are as follows: SEGMENTS (O00 of dollars) One Two $ 300.0 Three $350 Four Sales $ 250 $ 450.0 Variable Conta Cost of Goods Sold Selling & Administrative Contribution Margin 140 30 132.8 36.0 240 30 187.5 30.0 80 131.2 80 232.5 Eixed Costs: Cost of Goods Sold Selling & Administrative Net Income 60 45 S 251 19.2 24.0 S B.00 70 40 $ (30) 62.5 20.0 S 150.0 If a segment is discontinued, about 40% of the fixed costs and expensen for that segment would be saved. Top management is considering the discontinuation of one or both of the unprofitable segments. Most of the managers agree that both segments should be discontinued. INSTRUCTIONS: (MUST SHOW ALL COMPUTATIONS) 1. Should Anthony-Mason eliminate one or both of the unprofitable segments? Explain. Prepare analyzes to support your answer. 2. Compare the total income for all four segments with the total income f segment 3 was eliminated. Discuss the results of your comparison and explain the differences you find. For the third quarter of 2021, Anthony-Mason Company has four manutacturing segnents. The total income from manufacturing is $183,000. The results are as follows: SEGMENTS (O00 of dollars) One Two $ 300.0 Three $350 Four Sales $ 250 $ 450.0 Variable Conta Cost of Goods Sold Selling & Administrative Contribution Margin 140 30 132.8 36.0 240 30 187.5 30.0 80 131.2 80 232.5 Eixed Costs: Cost of Goods Sold Selling & Administrative Net Income 60 45 S 251 19.2 24.0 S B.00 70 40 $ (30) 62.5 20.0 S 150.0 If a segment is discontinued, about 40% of the fixed costs and expensen for that segment would be saved. Top management is considering the discontinuation of one or both of the unprofitable segments. Most of the managers agree that both segments should be discontinued. INSTRUCTIONS: (MUST SHOW ALL COMPUTATIONS) 1. Should Anthony-Mason eliminate one or both of the unprofitable segments? Explain. Prepare analyzes to support your answer. 2. Compare the total income for all four segments with the total income f segment 3 was eliminated. Discuss the results of your comparison and explain the differences you find.

Answer rating: 100% (QA)

1 No AnthonyMason should not eliminate the segments If Segment One is eliminated over... View the full answer