Sheridan Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000, variable expenses of $363,000, and fixed expenses of $144,000. Therefore, the gloves and mittens line had a net loss of $27,000. If Sheridan eliminates the line, $36,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45))
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- Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,000, variable expenses of $370,000, and fi xed expenses of $150,000. Therefore, the gloves and mittens line had a net loss of $20,000. If Gator eliminates the line, $38,000 of fi xed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line.Lambert, Inc. manufactures several types of accessories. For the year, the knit hats and scarves line had sales of $400,000, variable expenses of $310,000, and fixed expenses of $120,000. Therefore, the knit hats and scarves line had a net loss of $30,000. If Lambert eliminates the knit hats and scarves line, $20,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the knit hats and scarves line.Oriole Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $498,000, variable expenses of $365,000, and fixed expenses of $150,000. Therefore, the gloves and mittens line had a net loss of $17,000. If Oriole eliminates the line, $32,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number (e.g., -45) or parentheses (e.g., (45)).) Continue 498000 eTextbook and Media 365000 i 133000 -144000 -11,000 $ ŁA Eliminate i -43000 -43,000 LA $ HA The analysis indicates that Oriole should not eliminate the gloves and mittens line. Increase (Decrease) -498,000 365,000 -133,000 101,000 -32,000
- Shamrock Inc. manufactures golf clubs in three models. For the year, the Beca line has a net loss of $5,700 from sales of $234,000, variable costs of $210,600, and fixed costs of $29,100. If the Beca line is eliminated, $16,500 of fixed costs will remain. Prepare an analysis showing whether the Beca line should be eliminated. (If an amount reduces the net income then enter with a negative sign preceding the number eg. -15,000 or parenthesis, e.g. (15,000).) Continue Eliminate Increase (Decrease)Cornell Enterprises currently produces several products. Model L78 is showing a net operating loss as indicated by the following condensed income statement prepared for the year ended December 31. You have been hired by Cornell Enterprises to help analyze the decision as to whether to eliminate Model L78. Upon investigation, you discover that if Model L78 is eliminated, $20,000 of the fixed costs shown on the above condensed income statement can be eliminated. The rest of the fixed costs allocated to Model L78 are common fixed costs that will be allocated to the remaining two products produced by Cornell Enterprises. Determine if Cornell Enterprises should discontinue Model L78.Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fi xed costs $30,000. If the Big Bart line is eliminated, $20,000 of fi xed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated.
- Crane, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,000 from sales $199,000, variable costs $174,000, and fixed costs $29,000. If the Big Bart line is eliminated, $19,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Continue Eliminate Sales $ $ Variable costs Contribution margin Fixed costs Net Income /(Loss) $ The Big Bart product line should be $ $The management of Woznick Corporation has been concerned for some time with the financial performance of its product V860 and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V860 is discontinued. What would be the financial advantage (disadvantage) from dropping product V860? Multiple Choice ($35,000) ($5,000) $35,000 $5,000 $ 150,000 $ 72,000 $50,000 $ 33,000 FFF NextOld People Racquets manufactures pickleball racquets in four different models. For the year, the Ancient People racquet line had a net loss of $40,000 from sales of $250,000, variable costs of $180,00 and fixed costs of $110,000. If the Ancient People line is eliminated, $30,000 of fixed costs will remain. Should the line be eliminated and why or why not? It should be kept because it has a positive contribution margin. It should be eliminated and save the company $10,000. It should be elimninated-ancient people should never play any type of ball regardless of the dollars. It should be kept and save the company $10,000.
- Ram Co. is trying to decide whether or not to discontinue one of its products, slow cookers. Last year's sales and expenses for slow cookers are as follows: Sales $65,000 Less expenses: Variable costs $35,000 Fixed costs 48,000 83,000 Net operating loss $(18,000) If slow cookers are discontinued, 75% of the fixed costs can be avoided. At the same time, discontinuing slow cookers will have no effect on other products. What is the financial advantage or disadvantage of discontinuing slow cookers? Multiple Choice a)$17,000 financial advantage b)$13,000 financial disadvantage c)$4,000 financial disadvantage d)$6,000 financial advantage[The following information applies to the questions displayed below.] Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $142,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 $704,640 563,712 Sales Variable costs Contribution margin Fixed costs 140,928 184,000 Net loss $ (43,072) Required: . Compute the break-even point in dollar sales for 2019. (Round your answers to 2 decimal places.) Contribution Margin Per Unit Current Year $ 0.00 Contribution Margin Ratio Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio…[The following information applies to the questions displayed below.] Astro Co. sold 19,200 units of its only product and incurred a $43,072 loss (ignoring taxes) for the current year, as shown here. During a planning session for year 2020's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $142,000. The maximum output capacity of the company is 40,000 units per year. ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2019 $704,640 563,712 Sales Variable costs Contribution margin Fixed costs 140,928 184,000 Net loss $(43,072) Compute the sales level required in both dollars and units to earn $120,000 of target pretax income in 2020 with the machine stalled and no change in unit sales price. (Do not round intermediate calculations. Round your answers to 2 decimal places. pund "Contribution margin…