Sandhill, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022...

 
 

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Sandhill, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,100 8,500 3,400 17,000 Revenue $119,000 $85,000 $68,000 $272,000 Less variable costs 54,400 44,200 27,200 125,800 Less direct fixed costs 23,800 32,300 20,400 76,500 Less allocated fixed costs 10.200 17,000 6,800 34,000 Net income $30,600 $(8,500) $13,600 $35,700 All of the allocated costs will continue even if a division is discontinued. Sandhill allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sandhill is concerned that it should be discontinued. Sandhill thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. (a) Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 1,525.) Bud Er Total Revenue 2$ 2$ Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ 2$ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Sandhill, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,100 8,500 3,400 17,000 Revenue $119,000 $85,000 $68,000 $272,000 Less variable costs 54,400 44,200 27,200 125,800 Less direct fixed costs 23,800 32,300 20,400 76,500 Less allocated fixed costs 10.200 17,000 6,800 34,000 Net income $30,600 $(8,500) $13,600 $35,700 All of the allocated costs will continue even if a division is discontinued. Sandhill allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sandhill is concerned that it should be discontinued. Sandhill thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. (a) Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 1,525.) Bud Er Total Revenue 2$ 2$ Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ 2$ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Sandhill, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,100 8,500 3,400 17,000 Revenue $119,000 $85,000 $68,000 $272,000 Less variable costs 54,400 44,200 27,200 125,800 Less direct fixed costs 23,800 32,300 20,400 76,500 Less allocated fixed costs 10.200 17,000 6,800 34,000 Net income $30,600 $(8,500) $13,600 $35,700 All of the allocated costs will continue even if a division is discontinued. Sandhill allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sandhill is concerned that it should be discontinued. Sandhill thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. (a) Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 1,525.) Bud Er Total Revenue 2$ 2$ Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ 2$ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Sandhill, Inc. has three divisions: Bud, Wise, and Er. The results of operations for May, 2022 are presented below. Bud Wise Er Total Units sold 5,100 8,500 3,400 17,000 Revenue $119,000 $85,000 $68,000 $272,000 Less variable costs 54,400 44,200 27,200 125,800 Less direct fixed costs 23,800 32,300 20,400 76,500 Less allocated fixed costs 10.200 17,000 6,800 34,000 Net income $30,600 $(8,500) $13,600 $35,700 All of the allocated costs will continue even if a division is discontinued. Sandhill allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Sandhill is concerned that it should be discontinued. Sandhill thinks that if the division is closed, that sales at the Bud division will increase by 12% while sales at the Er division will stay the same. (a) Prepare an analysis showing the effect of discontinuing the Wise division. (Do not round intermediate calculations and round final answers to 0 decimal places, e.g. 1,525.) Bud Er Total Revenue 2$ 2$ Less variable costs Less direct fixed costs Less allocated fixed costs Net income $ 2$ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer rating: 100% (QA)

Revised unit sales of budCurrent units sold 112 5100112 5712 ... View the full answer