Frisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because its...
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Frisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because its $103,630 expenses are higher than its $98,160 sales. The company reports the following expenses for this division. Cost of goods sold Direct expenses Indirect expenses Service department costs Wired Earbuds Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $77,000 10,650 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Total expenses Net income (loss) Revenues from wired earbuds division Avoidable expenses Revenues are greater than (less than) avoidable expenses by 500 9,800 Unavoidable Expenses Kept $1,350 2,250 2,080 Eliminated Frisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because its $103,630 expenses are higher than its $98,160 sales. The company reports the following expenses for this division. Cost of goods sold Direct expenses Indirect expenses Service department costs Wired Earbuds Division is: Sales Expenses: Cost of goods sold Direct expenses Indirect expenses Service department costs Avoidable Expenses $77,000 10,650 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Total expenses Net income (loss) Revenues from wired earbuds division Avoidable expenses Revenues are greater than (less than) avoidable expenses by 500 9,800 Unavoidable Expenses Kept $1,350 2,250 2,080 Eliminated
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Calculate the differential analysis as follows Wired Ear Buds division is Kept Eliminated Sales 98... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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