The following information is available on Crain Co.'s two product lines: Assuming the tables line is discontinued
Question:
![Chairs Tables $180,000 $ 48,000 Sales Variable costs (96,000) (30,000) Contribution margin $ 84,000 $ 18,000 Fixed costs](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images15/1368-B-M-A-V-C(1831).png)
Assuming the tables line is discontinued and the factory space previously used to make tables is rented for $24,000 per year, operating income will increase by what amount?
a. $28,800
b. $24,000
c. $13,200
d. $18,000
Transcribed Image Text:
Chairs Tables $180,000 $ 48,000 Sales Variable costs (96,000) (30,000) Contribution margin $ 84,000 $ 18,000 Fixed costs: Avoidable (36,000) (12,000) Unavoidable (18,000) (10,800) Operating income (loss)$ 30,000 $(4,800)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
D is correct When making a decision the only relevant revenues and costs are those ...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Question Posted:
Students also viewed these Managerial Accounting questions
-
The following information is available on the Vanier Corporation: BALANCE SHEET AS OF DECEMBER 31, 20X6 (IN THOUSANDS) INCOME STATEMENT FOR 20X6 (IN THOUSANDS) Credit sales..$8,000 Cost of goods...
-
The following information is available on a three-year swap contract. One-year maturity zero coupon discount yields are currently priced at par and pay a coupon rate of 5 percent. Two-year maturity...
-
The following information is available for Gerard Corporation (a) Compute earnings per share for 2012 and 2011 for Gerard, and comment on the change. Gerard??s primary competitor, Thorpe Corporation,...
-
Wollongong Group Ltd, of New South Wales, Australia, acquired its factory building about 10 years ago. For several years the company has rented out a small annex attached to the rear of the building....
-
Use the properties of integrals to verify the inequality without evaluating the integrals.
-
The mean cost of a meal for two in a mid-range restaurant in Tokyo is $40 (Numbeo.com website, December 14, 2014). How do prices for comparable meals in Hong Kong compare? The Data file Hong Kong...
-
Two pairs. You read in a book on poker that the probability of being dealt two pairs in a five-card poker hand is 1/21. Explain in simple language what this means.
-
Salamah Hijazi, an Egyptian immigrant, founded The Lavender Soap Company (LSC) in Seattle at the end of X1 with a capital at par of $60,000. The business mission of Lavender Soap was to distribute...
-
Sheridan Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $178,000, has an estimated useful life of 7 years...
-
Suppose you take out a margin loan for $75,000. You pay a 6.4 percent effective rate. If you repay the loan in two months, how much interest will you pay?
-
Redesigned Computers has 5.25 percent coupon bonds outstanding with a current market price of $546.19. The yield to maturity is 16.28 percent and the face value is $1,000. Interest is paid...
-
Write about Walt Disney company and include the following in your answer Important facts in this case (company, industry, competition, etc.)? Environmental & Competitive Scan External factors outside...
-
Sand is supported on a porous disc and screen in vertical cylinder, as shown in Fig. P7.14. These are equilibrium conditions. (a) For each of the five cases, plot the total, neutral, and effective...
-
Conservation efforts include reintroduction of species into the wild from captive breeding programs. Leung et al. (2018) rewilded mice from the inbred laboratory strain of mouse, C57BL/6, that had...
-
The ending balance of the Accounts Receivable account was \(\$ 7,800\). Services billed to customers for the period were \(\$ 21,500\), and collections on account from customers were \(\$ 23,600\)....
-
Cash Flow Activity Classification Classify each activity as financing, investing, or operating: 1. Repay a loan from a bank. 2. Sell merchandise from a storefront operation. 3. Dispose of an old...
-
Generally Accepted Accounting Principles Select the best answer to each of the following MBC) questions: 1. Accounting rules are developed to provide: a. Simplicity b. Useful information c....
-
Basic Accounting Principles Identify whether the following statements are true or false. 1. Together the revenue recognition principle and the expense recognition (matching) principle define the...
-
Copy and complete the statement for DEF with medians DH, EJ, and FG, and centroid K. EJ = ? KJ
-
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
-
Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $25. a. Calculate the exercise value of the firms warrants if the common...
-
Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $25. a. Calculate the exercise value of the firms warrants if the common...
-
The Tsetsekos Company was planning to finance an expansion in the summer of 2004. The principal executives of the company all agreed that an industrial company such as theirs should finance growth by...
-
Problem Set Time Value of Money 1. In 10 years, what is the value of $100 invested today at an interest rate of 8% per year, compounded annually? 2. In 10 years, what is the value of $100 invested...
-
The Blending Department of Luongo Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $120,000 Conversion costs:...
-
Q3 plz answer correctly and check work Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why is our operating profit margin...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App