Yoyo, Inc. produces 3 different products with costs as follows: A Sales Revenue Variable Costs Contribution...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Yoyo, Inc. produces 3 different products with costs as follows: A Sales Revenue Variable Costs Contribution Margin Avoidable Fixed Costs Unavoidable Fixed Costs Depreciation Expense Units Sold: $8 3 5 $65,000 $20,000 $10,000 2,000 B $18 10 8 $27,500 $10,000 $ 8,000 4,000 с $20 14 6 $32,000 $12,000 $ 4,000 6,000 Sales managers have been unsuccessful in increasing sales and the Company must consider which products to drop in order to maximize total operating income for the Company. Total company administrative and warehouse costs that are allocated 1/3 to each product are $30,000. The assets being depreciated cannot be sold. Determine what the company should do to maximize operating income. Yoyo, Inc. produces 3 different products with costs as follows: A Sales Revenue Variable Costs Contribution Margin Avoidable Fixed Costs Unavoidable Fixed Costs Depreciation Expense Units Sold: $8 3 5 $65,000 $20,000 $10,000 2,000 B $18 10 8 $27,500 $10,000 $ 8,000 4,000 с $20 14 6 $32,000 $12,000 $ 4,000 6,000 Sales managers have been unsuccessful in increasing sales and the Company must consider which products to drop in order to maximize total operating income for the Company. Total company administrative and warehouse costs that are allocated 1/3 to each product are $30,000. The assets being depreciated cannot be sold. Determine what the company should do to maximize operating income.
Expert Answer:
Answer rating: 100% (QA)
ANSWER To determine which products to drop in order to maximize total operating income for the Compa... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
We have looked at the breakeven calculations for a single-product firm. However, most firms make more than one product - or service. Conceptually, multiple-product breakeven is the same as single...
-
Sketch the graph and draw several vertical and horizontal traces. (x, y) = sin(x y)
-
Is it important to stick with your marketing plan even if it isnt returning immediate results? Why or why not?
-
Prove that: 8 64 a. 2 log10 +3 log10 16 + log10 9
-
A centrifugal air compressor has a rotor inner diameter of \(D_{1}=2.0\) in., a rotor outer diameter of \(D_{2}=6.5\) in., a rotor depth of \(10 \mathrm{in}\)., and a rotor rotational speed of \(3600...
-
The perpetual inventory records of the Park Company indicate the following transactions in the month of June: Required Compute the cost of goods sold for June and the inventory at the end of June,...
-
Cost of a Fixed Asset Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $83,000; interest charges,...
-
What are the major causes of information risk? How can information risk be reduced?
-
Microsoft is the worlds most successful software company. Bill Gates and Paul Allen founded it in 1975 with the original mission of having a computer on every desk and in every home, running...
-
line r has an equation of y + 1 0 = - 2 ( x - 6 ) . line s is perpendicular to line r and passes theough ( 1 , 2 ) . whqt is the equation of line s ?
-
DaisyChain,are siden ttax payer,sold the following CGT assets during the2O21/22 tax year: COST ACQUISITION DISPOSAL SALE ASSET BASE DATE DATE PRICE Jewellery $400 3JulO7 11Jun22 $1,1OO Artwork $3,5OO...
-
What strategies do you use to ensure clear and effective written communication? Describe a time when you had to manage a communication crisis.
-
PART A.1-Statement of Comprehensive Income Pet Training Company has shared the following details relating to 2023: Income from continuing operations (net of tax) During 2023, the company disposed of...
-
How long until you get 1,00,000 if you invest 10,000 a year at a 9% interest rate with a present value of 0 (assuming annual compounding)
-
Assume a U.S. importer signs a 90-day promissory note with his bank for the face value of the banker's acceptance, due on the maturity date of the banker's acceptance. The face amount of the...
-
General Electric Capital, a division of General Electric, uses long-term debt extensively. In a recent year, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal...
-
Brooks/Neff, Ltd. personalizes scrapbooks for customers, using their digital photographs. Each scrapbook sells for $50. Brooks/ Neff collects cash at the time of sale from 30 percent of customers. Of...
-
In 1999, Blue Nile, Inc. began selling diamonds and other fi ne jewelry over the Internet. Using an online retailing model, Blue Nile prices its diamonds at an average of 35% less than traditional...
-
Payton and Finley Davis run a real estate brokerage fi rm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm's services. The sign they are...
-
In terms of leadership behaviors, someone who focuses on doing a very good job of planning work tasks, setting performance standards, and monitoring results would be described as _________. (a) task...
-
In the discussion of gender and leadership, it was pointed out that some perceive women as having tendencies toward, ________ a style that seems a good fit with developments in the new workplace. (a)...
-
In Houses path-goal theory, a leader who sets challenging goals for others would be described as using the _______ leadership style. (a) autocratic (b) achievement-oriented (c) transformational (d)...
Study smarter with the SolutionInn App