Please do not give solution in image format thanku Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas, andtomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance,the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenueassociated with it would be lost and the related variable costs saved. In addition, the company's total fixed costswould be reduced by 15 percentSegmented income statements appear as follows:Sales:Variable costsContribution marginFixed costs allocated to each product lineOperating profit (loss)Required:a. Prepare a differential cost schedule.b. Should Gilbert Canned Produce drop the sweet pea product line?Complete this question by entering your answers in the tabs below.RevenueLess: Vanable costsContribution marginGreen Beans$ 91,00061,000$ 30,00013,580$ 16,420Required A Required BPrepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "nonethere is no effect.)Less: Fixed costsOperating profit (loss)Status QuoSweet Peas$ 135,500118,400$ 17,10022,340$ (5,240)Alternative: DropSweet PeasTomatoes$ 158,700123,300$ 35,40034,360$ 1,040Difference

The differential analysis is performed to compare the different alternatives available with the…

Answered: Gilbert Canned Produce (GCP) packs and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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S Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Complete this question by entering your answers in the tabs below. Required A Required B Revenue Less: Variable costs Contribution margin Green Beans $ 90,000 60,600 $ 29,400 13,180 $ 16,220 Prepare a differential cost schedule. (Select…
Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Green Beans $ 81,500 57,200 $ 24,300 9,780 $ 14,520 Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Complete this question by entering your answers in the tabs below. Required A Required B Sweet Peas $ 107,000 100,300 $ 6,700 12,840 $ (6,140) Tomatoes $ 128,000 104,300 $ 23,700 15,360 $…
Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company’s performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company’s total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Green Beans Sweet Peas Tomatoes Sales $ 88,500 $ 128,000 $ 148,700 Variable costs 60,000 113,400 118,300 Contribution margin $ 28,500 $ 14,600 $ 30,400 Fixed costs allocated to each product line 12,580 19,840 29,360 Operating profit (loss) $ 15,920 $ (5,240) $ 1,040 Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line?
Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet peas; and tomatoes. The company is currently operating at 82 percent of capacity. Worried about the company's performance, the chief marketing officer is considering dropping the canned sweet peas. If sweet peas are dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Green Beans $ 88,000 59, 800 $ 28, 200 12,380 $ 15,820 Required: a. Prepare a differential cost schedule. b. Should Gilbert Canned Produce drop the sweet pea product line? Sweet Peas $ 126,500 112,400 $ 14,100 19,340 $ (5,240) Tomatoes $ 146,700 117,300 $ 29,400 28, 360 $ 1,040
O’Neil Enterprises produces a line of canned soups for sale at supermarkets across the country. Demand has been “soft” recently and the company is operating at 70 percent of capacity. The company is considering dropping one of the soups, beef barley, in hopes of improving profitability. If beef barley is dropped, the revenue associated with it will be lost and the related variable costs saved. The CFO estimates that the fixed costs will also be reduced by 25 percent. The following product line statements are available. Product Broth Beef Barley Minestrone Sales $ 32,600 $ 42,800 $ 51,200 Variable costs 22,000 38,600 40,100 Contribution margin $ 10,600 $ 4,200 $ 11,100 Fixed costs allocated to each product line 4,700 6,000 7,100 Operating profit (loss) $ 5,900 $ (1,800 ) $ 4,000 Required: a-1. Complete the following differential cost schedule. a-2. From an operating profit perspective, should O'Neil…
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $ 32,900 $ 43,400 $ 51,500 Variable costs 23,030 39,060 41,200 Contribution margin $ 9,870 $ 4,340 $ 10,300 Fixed costs allocated to each product line 5,400 6,300 6,900 Operating profit (loss) $ 4,470 $ (1,960 ) $ 3,400 Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no…
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In Addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $32,600 $43,600 $51,600 Variable costs 22,820 39,240 41,280 Contribution margin $ 9,700 $ 4,360…
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Original Strawberry Orange Sales $ 33,300 $ 42,300 $ 51,500 Variable costs 23,310 38,070 41,200 Contribution margin $ 9,990 $ 4,230 $ 10,300 Fixed costs allocated to each product line 5,200 6,300 7,500 Operating profit (loss) $ 4,790 $ (2,070 ) $ 2,800 Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no…
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
Greenview Dairies produces a line of organic yogurts for sale at supermarkets and specialty markets in the Southeast. Economic conditions and changing tastes have resulted in slowing demand growth. After recently expanding capacity, the company is now operating at 65 percent of the new capacity. The company is considering dropping one of the yogurt flavors, mixed berry, in hopes of improving profitability. If the mixed berry variety is dropped, the revenue associated with it will be lost and the related variable costs saved. The production manager estimates that the fixed costs will also be reduced by 30 percent. The following quarterly product line income statements (in thousands of dollars) are available: Product Sales Variable costs Contribution margin Fixed costs allocated to each product line Operating profit (loss) Vanilla $21,790 14,700 $7,090 3,095 $3,995 Peach $33,840 26,465 $7,375 4,655 $2,720 Mixed Berry $28,380 25,490 Complete this question by entering your answers in the…
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope. Required 1. Estimate Product XT’s break-even point in terms of (a) sales units and (b) sales dollars. 2. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.
Galveston Pump Corporation is considering implementing a JIT production system. The new system would reduce current average inventory levels of $2,000,000 by 75%, but it would require a much greater dependency on the company’s core suppliers for on-time deliveries and high-quality inputs. The company’s operations manager, Frank Griswold, is opposed to the idea of a new JIT system because he is concerned that the new system (a) will be too costly to manage; (b) will result in too many stockouts; and (c) will lead to the layoff of his employees, several of whom are currently managing inventory. He believes that these layoffs will affect the morale of his entire production department. The management accountant, Bonnie Barrett, is in favor of the new system because of its likely cost savings. Frank wants Bonnie to rework the numbers because he is concerned that top management will give more weight to financial factors and not give due consideration to nonfinancial factors such as employee…

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