The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $769,600 $399,900 $261,800 $ 223,400 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $185,000 of the fixed manufacturing expenses and $160,300 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating income (loss) would product B00D were dropped Therefore, the product dropped The management of Wengel Corporation is considering dropping product 890D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses $769,600 $399,900 $261,800 $ 223,400 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $185,000 of the fixed manufacturing expenses and $160,300 of the fixed selling and administrative expenses are avoidable if product 890D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping 890D? Should the product be dropped? Net operating income (loss) would product B00D were dropped Therefore, the product dropped
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
SharpCo operates a large grocery store. On 1 October 2022, SharpCo purchased and installed a new security system at a cost of $200,000 (excluding GST) with an effective life of 10 years, SharpCo does...
-
The following data were taken from the financial statements of Heston Enterprises Inc. for the current fiscal year. Assuming that long-term investments totaled $2,100,000 throughout the year and that...
-
Prove the following statement: 'For an ideal gas, the internal energy is a function of temperature only'.
-
You have used the three-point method to estimate the duration of an activity that you know will be critical to the project. The estimate produces a very large difference between the optimistic and...
-
Data for Schmidt Company is presented in the following table of rates of return on investment and residual incomes: Determine the missing items, identifying each item by the appropriateletter. Income...
-
Determine whether the sequence is convergent or divergent. If it is convergent, find the limit. n- + In 2 [A) (3 pts) a,, = + 3e 2h - 1 3 (B) (3 pts) d, = 2 + - + cos(2nix) (C) (3 pts) a,, = In(7n-...
-
The following information pertains to Trisan Company's budgeted income statement for the month of June 2011: (Click the icon to view the budgeted income statement.) Requirements (a) Determine the...
-
How is the worldwide trend towards urbanisation and greater overseas travel affecting opportunities for international selling?
-
Describe the financial reporting environment. Indicate whether each statement is true or false. (a) Accounting standards are set by the Financial Reporting Council. (b) The ASX Listing Rules are only...
-
What would be your marketing communications and sales promotional strategies for the company in the United States? More specifically, outline your sales message and the type of media you would use to...
-
What are the two criteria that auditors of public companies consider when determining whether memos, correspondence, and other documents must be maintained in the audit files?
-
State the third standard of field work. Explain the meaning of each of the major phrases of the standard.
-
Write essay, discuss: - the difference between regression and descriptive analysis - Simulation vs forecasting
-
Convert the numeral to a HinduArabic numeral. A94 12
-
Take the communication quiz at www.mindtools.com/pages/article/ newCS_99.htm (Mind Tools 2016). Write a one-page paper describing your communication strengths and weaknesses.
-
Your uncle is a proud owner of an up-market clothing store. Because business is down he is considering replacing the languishing tie department with a new sportswear department. In order to examine...
-
You are the owner of a factory that supplies chairs and tables to schools in Denver. You sell each chair for $1.76 and each table for $4.40 based on the following calculation: You have received an...
Study smarter with the SolutionInn App