Thalassines Kataskeves, S . A . Income Statement Bilge Pump For the Quarter Ended March 3 1
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Question:
Thalassines Kataskeves, SA
Income StatementBilge Pump
For the Quarter Ended March
Sales $
Variable expenses:
Variable manufacturing expenses $
Sales commissions
Shipping
Total variable expenses
Contribution margin
Fixed expenses:
Advertising for the bilge pump product line
Depreciation of equipment no resale value
General factory overhead
Salary of productline manager
Insurance on inventories
Purchasing department
Total fixed expenses
Net operating loss $
Common costs allocated on the basis of machinehours.
Common costs allocated on the basis of sales dollars.
Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the companys total general factory overhead or total Purchasing Department expenses.
Required:
What is the financial advantage disadvantage of discontinuing the bilge pump product line?
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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