Problem 8-29 - Part C

B -

C -

Problem 8-29 (B) Delta Aluminum's management is considering eliminating product B, which has been showing a loss for several years. The company's annual income statement is as follows: Total $2,284,000 $1,402,000 $1,801,300 $5,487,300 Sales Variable expenses 1,448,000 800,400 1,091,300 3,339,700 Contribution margin $836,000 $601,600 $710,000 $2,147,600 Advertising expense $600,000 $529,000 $522,000 $1,651,000 Depreciation expense 21,400 50,100 17,700 11,000 88,200 83,100 106,800 Corporate expenses 278,100 Total fixed expenses $623,100 $650,200 $1,979,200 900 $130,100 $-21,500 $59,800 $168,400 Operating income Advertising expense Specific to each product. Depreciation expense Specific to each product; no other use available, no resale value. Corporate expenses Allocated based on number of employees. Problem 8-29 (Part Level submission) Restate the income statement in segment margin format. Total 1.801,300 2,284,000 1,402,000 5,487,300 Sales Variable expenses 1,448,000 800,400 1,091,300 3,339,700 Contribution margin 836,000 2,147,600 Less Direct fixed expenses 1,651,000 600,000 522,000 17,700 11,000 21,400 50,100 Depreciation s 166,600 146.500 61,600 218,300 s Segment margin Less v Common fixed expenses 278,100 168,400 Operating profit