Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable. Depreciation of special equipment Salaries of product-line managers i Allocated common fixed expenses" Total fixed expenses Net operating income (loss) Dirt Mountain Bikes Racing Bikes Total Bikes $ 922,000 $262,000 $ 407,000 $ 253,000 480,000 117,000 203,000 160,000 442,000 145,000 204,000 93,000 69,300 8,200 40,900 20,200 7,200 15,900 43,500 20,400 116,300 40,300 184,400 52,400 37,000 39,000 81,400 50,600 413,500 121,300 168,500 123,700 $ 28,500 $ 23,700 $ 35,500 $(30, 700) Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? 2. Should the production and sale of racing bikes be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the racing bikes? Required 2 > Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Dirt Bikes Mountain Bikes Racing Bikes Contribution margin (loss) Traceable fixed expenses Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss) < Required 2
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Sales Variable manufacturing and selling expenses Contribution margin loss Fixed expenses A... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
Students also viewed these accounting questions
-
The commercial fishing industry is concerned about the effect on fish of small amounts of pharmaceuticals in rivers and coastal waters where extensive fishing is done. In a recent study of the...
-
The Strategic Air Command (SAC) is concerned about the possibility that missiles will not launch successfully. Utilizing test data, it regresses X1 (the temperature at launch in degrees Fahrenheit),...
-
The administrator at Saint Frances Hospital is concerned about the amount of overtime the nursing staff is incurring and wonders whether so much overtime is really necessary. The hospital employs 60...
-
What is data science, how does it differ from traditional statistics, explain data science process, including the key steps involve in it.
-
What disposition should be made of the balance remaining in a Debt Service Fund after the bonds mature and are paid?
-
In Example 3, change (3,5) to (3,5). Data from Example 3 The slope of a line through (3,5) and (2,6) is See Fig. 21.5. Again, we may interpret either of the points as (x 1 , y 1 ) and the other as (x...
-
How does an auditor verify recorded shareholders' equity balances?
-
Ethanol is produced commercially by the hydration o ethylene: C 2 H + H 2 0 C 2 H 5 OH some of the product is converted to diethyl ether in the side reaction 2C 2 H 5 OH (C 2 H 5 ) 2 O + H 2 O the...
-
Net Credit Sales 500,000 Cost of Goods Sold 300,000 Operating expenses 75,000 interest and other expenses 25,000 Inventory at beginning of year 38,356 Inventory at end of year 43,836 Stock price 5...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Name four ethical practices online consumers are expected to follow? How are these expectations communicated to consumers?
-
Training cost do not have to be expensive. If organizations leverage their available in-house expertise to provide face to face "up-skilling" sessions or even lunch and learn sessions, this would be...
-
The most successful companies develop and implement an effective strategic plan to help them pursue their organizational goals. But even the best strategic plan won't be very effective if the human...
-
Describe how an engineering firm can use blueprinting to minimize problems which may arise during service encounter?
-
On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is paid annually on December 31. The market (effective) rate of interest is 4%. If the bond sells as...
-
2. The following table represents autarkic (time 1) and free trade (time 2) production and consumption of two goods on the Planet Vulcan: Starships and Phasers. It also shows the amount of capital...
-
ABC Co . invests $ 1 0 million in a mine estimated to have 5 million tons of coal and no salvage value. If ABC extracts 2 0 0 0 0 tons in the first year, then ABC records the following entry, a...
-
QUESTION 2 The CEO of Farisha Hijab Sdn Bhd insisted on further investigation to be carried out that he also required Mr Muaz to conduct the analysis of variance for the material and labour of the...
-
Toyland Company was one of the original producers of Transformers. An especially complex part of Sect-a-con needs special tools that are not useful for other products. These tools were purchased on...
-
Form groups of three to five people. Search the Internet using the terms job costing software and either construction or manufacturing. Select three sites offering job-costing software solutions,...
-
Kiku Yamamoto is the controller of Watanabe Inc., an electronic controls company located in Osaka. She recently attended a seminar on activity-based costing (ABC) in Tokyo. Watanabes traditional cost...
-
What information do CPAs request from a financial institution on the Standard Form to Confirm Account Balance Information with Financial Institutions?
-
Why was the Hochfelder v. Ernst decision considered a "victory" for the accounting profession?
-
The CPA firm of Hanson and Brown was expanding very rapidly. Consequently, it hired several staff assistants, including James Small. Subsequently, the partners of the firm became dissatisfied with...
Study smarter with the SolutionInn App