Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has a net loss of $22,000 from sales $200,000, variable costs $164,000, and fixed costs $58,000. If the Star Premium line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Star Premium line should be eliminated. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). • If the amount is zero, enter 0. Continue or Eliminate Net Income Continue Eliminate Increase (Decrease) $ Sales $ $ $. Variable Costs %24 Contribution Margin $ Fixed Costs Net Income/(Loss) %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 Pell, Inc. manufactures computers in four different models. For the year, the Star Premium line has a net loss of $22,000 from sales $200,000, variable costs $164,000, and fixed costs $58,000. If the Star Premium line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Star Premium line should be eliminated. • Do NOT enter a dollar sign. For example, if you are typing $10,000 as your answer, answer should be typed as 10,000 without any dollar sign. • For any negative amounts, enter them using either a negative sign preceding the number such as -50 or parentheses such as (50). • If the amount is zero, enter 0. Continue or Eliminate Net Income Continue Eliminate Increase (Decrease) $ Sales $ $ $. Variable Costs %24 Contribution Margin $ Fixed Costs Net Income/(Loss) %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24
Expert Answer:
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
Students also viewed these accounting questions
-
In 2008 Time Warner, Inc., reported a net loss of $13.4 billion. This loss occurred predominantly because Time Warner took a charge for asset impairments of $24,309 million, ($24.3 billion). (These...
-
In 2011, Oswald Corporation reported a net loss of $56,000. Oswalds only net income adjustments were depreciation expense of $87,000 and an increase in accounts receivable of $8,100. Calculate...
-
In 2014, Oswald Corporation reported a net loss of $56,000. Oswald's only net income adjustments were depreciation expense of $87,000 and an increase in accounts receivable of $8,100. Calculate...
-
paraphrase the following two passages using narrative in-text citations: 1.Those who teach ethics don't need to look far for lessons. Every day there's fresh scandal: Google is in hot water for how...
-
Speedy Company uses the double-declining-balance method to depreciate its property, plant, and equipment, and Turtle Company uses the straight-line method. The two companies are exactly alike except...
-
A car manufacturer uses a model to predict the fuel consumption, y miles per gallon (mpg), for a specific model of car travelling at a speed of x mph. y = 0.01x 2 + 0.975x + 16, x > 0 a. Use the...
-
Using the method given in Eq. (2.5-25), find the joint probability density function \(p_{W Z}(w, z)\) when \[ \begin{align*} & w=u^{2} \\ & z=u+v \tag{p.2-1} \end{align*} \] and \(p_{U V}(u,...
-
At Creighton Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $870...
-
The following selected accounts and their current balance for Peoples Inc. for the year ended December 31, 20X8. Additional information: Current portion of the Notes Payable: $ 17,625; additional...
-
A2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. What is the cross-price elasticity of demand for chocolate syrup with respect to the...
-
Answer the following questions involving isomorphisms or subgroups. 1. Prove that (R.+)- (R+,> defined by (x) =e* using the function p:R -R+ 2. Name at least three structural properties. 3. Determine...
-
The use of chips to track goods during the shipping process is becoming more widespread. Use the Internet to research options for RFID. What are some of the options for tracking goods? What kind of...
-
Which formula is the fundamental accounting equation? a. Owners equity = assets + liabilities b. Assets = liabilities + owners equity c. Owners equity = assets liabilities d. Liabilities - assets =...
-
Cash flow management is important for which business? a. Spring Mountain Ski Shop, which operates between November and March b. Lederach Tea Room, which serves breakfast and lunch all year c....
-
Maureen found an old barn that would be a perfect location for her restaurant and catering business. She opened a Kickstarter account to begin to raise funds for the business. Maureen is taking...
-
The text lists only a few ratios that are used to analyze financial statements. Research three more ratios, explain how they are calculated, and explain why they are important to financial analysis.
-
A +6.50 lens is decentered 3 mm toward the wearer's nose. What prism effect is created? a. 1.95 BO b. 2.54 BI O C, 254 B d. 1.95 BI
-
Write a program that initializes an array. It inputs a value from the user and searches the number in the array.
-
What is the advantage of using a perpetual budget instead of the traditional annual budget?
-
Provide at least one example of an appropriate cost driver (allocation base) for each of the following activities. a. Workers count completed goods before moving them to a warehouse. b. A logistics...
-
The following transactions pertain to 2012, the first-year operations of Hall Company. All inventory was started and completed during 2012. Assume that all transactions are cash transactions. 1....
-
In a vapour compression refrigeration system, the condition of refrigerant before entering the compressor is (a) saturated liquid (b) wet vapour (c) dry saturated liquid (d) superheated vapour
-
During a refrigeration cycle, heat is rejected by the refrigerant in (a) compressor (b) condenser (c) evaporator (d) expansion valve
-
The highest temperature during the cycle in vapour compression refrigeration system occurs after (a) compression (b) condensation (c) expansion (d) evaporation
Study smarter with the SolutionInn App