Please do not give solution in image format thanku Ch. 13-The management of Tamari, Inc is considering dropping product S01S4UC3. Datafrom the company's budget for the upcoming year appear below:SalesVariable expensesFixed manufacturing expensesFixed selling and administrative expenses$ 930,000$ 378,000$360,000$ 240,000In the company's accounting system all fixed expenses of the company are fully allocated toproducts. Further investigation has revealed that $115,000 of the fixed manufacturingexpenses and $102,000 of the fixed selling and administrative expenses are avoidable and canbe eliminated if product C04433 is discontinued. The financial advantage (disadvantage) forthe company of eliminating this product for the upcoming year would be:($335,000)$335,000($552,000)($165,000)

The financial advantage or disadvantage of eliminating or continuing a product is calculated by…

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amari, Inc is considering dropp 's budget for the upcoming year appear bela

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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Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and management is considering discontinuing the product altogether. Data from the company's budget for the upcoming year appear below: Sales Variable expenses $ 730,000 $ 350,000 $ 234,000 $ 161,000 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 $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be: $15,000 $143,000 O ($143,000) O ($15,000)
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