III. Basic Drop-a-Segment Decision (LO3) Finlay Grace Sullivan & Company has two sales offices: one located in Portland, Maine, and one in Portsmouth, New Hampshire. Management is considering dropping the Portland office. The company's records report the following information: Portland Portsmouth Sales $40,000 $50,000 Direct Costs: Variable Fixed 15,000 25,000 10,000 10,000 Required: What will be the effect on income if the Portland office is eliminated and half of its fixed costs are avoided?

III. Basic Drop-a-Segment Decision (LO3) Finlay Grace Sullivan & Company has two sales offices: one located in Portland, Maine, and one in Portsmouth, New Hampshire. Management is considering dropping the Portland office. The company's records report the following information: Portland Portsmouth Sales $40,000 $50,000 Direct Costs: Variable Fixed 15,000 25,000 10,000 10,000 Required: What will be the effect on income if the Portland office is eliminated and half of its fixed costs are avoided?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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Can you please review my homework? I am sending answer and what I think is the solution That is the only information I have . I have submiited the question before but they said information was missing in the question I sent. ⦁ Big Sky Dermatology Specialist are setting the price on a new office location. Here are the relevant data estimates:Variable Cost Per Visit $8.00Annual Direct fixed Cost $650,000Annual overhead allocation $65,000Expected annual utilization 10,000 visits ⦁ What per visit price must be set for the service to break-even? To earn an annual profit of $100,000?Insert your response here. Per visit price= Variable cost + fixed cost + annual overhead / total # number of visits(variable cost *volume) Per visit price = 8*10,000 + 650,000 + 65,000/ 10,000= 80,000 + 650,000 + 65,000/ 10,000= 795,000/10,000Per visit price = 79.5 Per visit price = total cost incurred by + desired profit/ total number of visits=79.5*10,000 + 100,000 /10,000= 895,000/10,000= 89.5To earn an annual…
2 Saalfrank Corporation is considering two alternatives that are code-named M and N. Costs associated with the alternatives are listed below: Supplies costs Assembly costs. Power costs Inspection costs. Alternative M Alternative N $ 49,000 $ 30,000 $ 15,500 $ 12,000 a. Supplies costs a. Assembly costs a. Power costs a. Inspection costs b. Differential cost $ 55,000 $ 30,000 $ 10,000 $ 23,000 3 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? b. What is the differential cost between the two alternatives?
The following information is for X Company's two products - A and B: Sales Total contribution margin Fixed costs: Submit Angus Tres 012 Tring Avoidable Unavoidable Profit Product A $93,000 39,990 21,000 5,000 $13,990 Product B $92,000 36,800 26,500 30,000 $-19,700 The company is considering dropping Product B because of the $19,700 loss. If X Company drops Product B, it will use the freed-up resources to increase sales of Product A by $16,000. If X Company drops Product B and increases sales of A, firm profits will change by
TB Problem Qu. 13-155 (Static) Suire Corporation is considering dropping... Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: $ 340,000 $ 156,000 $ 116,000 $ 75,000 Sales Variable expenses Fixed manufacturing expenses. Fixed selling and administrative expenses All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $72,000 of the fixed manufacturing expenses and $48,000 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E? b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?
=https%253A%252F%252Flms.mheducation.com%252Fmghmiddlewar... r 13 Homework i Saved Help Save & Exit Submit Check my work Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the segment is eliminated, the building it uses will be sold. Advertising expense Supervisory salaries Allocation of companywide facility-level costs Original cost of building Book value of building Market value of building Maintenance costs on equipment Real estate taxes on building $140,000 300,000 130,000 220,000 100, өөө 160,000 112, 0өө 12,000 0:50 Required Determine the amount of avoidable cost associated with the segment. ces Avoidable cost o search
A. engageNOWv2 | Online teachir X + com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssigni tSessionLocator=&inprogress... A The Atlantic Company sells a product with a break-even point of 6,167 sales units. The variable cost is $110 per unit, and fixed costs are $234,346. Determine the following: $ a. Unit sales price units b. Break-even point in sales units if the company desires a target profit of $82,080 ▬
3. Snapper Tool Company has plenty of excess capacity to accept a special order. Shown below is an "what-if" analysis of the special order. Which of the following is the correct decision and reason? Status Quo With Special Order Sales $128,000 $133,000 variable costs: Manufacturing 51,200 54,400 Selling and administrative 25,600 26,600 Contribution margin $51,200 $52,000 Fixed cost 19,200 19,200 Operating profit $32,000 $32,800 A) Yes, since the goal is to fill capacity as much as possible to keep fixed overhead variances as low as possible. B) No, the company will only break even. C) No, since only the employees will benefit from this in that they will earn more overtime. D) Yes, since operating profits will most likely increase.
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following Information is available to make the decision. Title Z Title X $99,000 Title Y $151,000 $199,000 76,000 100,000 $75,000 $99,000 29,000 15,000 $31,000 Sales Variable Cost Contribution Margin Direct Fixed Cost Allocated Common Fixed Cost 51,000 $48,000 19,000 10,000 Net Income $19,000 A. What is the total income if all titles were produced? $ 88,000 ✓ B. If Title X was dropped, what would be the effect on Net Income? $29,000✔ Loss ✔ C. How much did Title X Contribute to Fixed Costs? D. Determine the cost and the amount that will remain even if Title X is dropped. Allocated Fixed Cost ✓ 10,000 ✓ E. Which costs and amount will be eliminated if Title X is dropped? Contribution Margin v Direct Fixed Cost ✓ 48,000 19,000 40,000 21,000 $38,000 ✓
C ford Applicati... WP WileyPLUS B Bloomberg for Edu... || 02:59:53 Mc Graw Hill ezto.mheducation.com/ext/map/index.html?_con=con&ext... F1 Multiple Choice O Forrester Company is considering buying new equipment that would increase monthly fixed costs from $210,000 to $240,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $490,000 and current break-even units are 9,300. If Forrester purchases this new equipment, the revised contribution margin ratio would be: 4 O 4 30%. F2 60% 40%. 10%. F5 Help F6 Save & Exit DELL F7 B Submit F8 >>> C hor to pa