avapei Company produces three products: A, B, and C. A segmented income statement, with amounts given in thousands, follows:   Direct fixed expenses include depreciation on equipment dedicated to the product lines of $20,000 for A, $120,000 for B, and $25,000 for C. None of the product line equipment can be sold, and would have to be disposed of if the product line were dropped. Required What impact on profit would result from dropping Product C? Suppose that 10 percent of the customers for Product B choose to buy from Yavapei because it offers a full range of products, including Product C. If C were no longer available from Yavapei, these customers would go elsewhere to purchase B. Now what is the impact on profit if Product C is dropped?

Choose the product that will have the largest loss if sales greatly decrease.   Letter Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow.

Product B has revenue of $39,500, variable cost of goods sold of $25,500, variableselling expenses of $16,500, and fixed costs of $15,000, creating a loss from operationsof $17,500. Prepare and show in solution a differential analysis as of May 9 todetermine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.

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Rowan coffee co. Incurs a loss from operations for the standard coffee line. Sales revenue for the line total $72,000 while incurring variable cost of goods sold of $19,500, variable selling expenses of 17,400 and a fixed cost of $ 49,000. How do I determine if the standard coffee line should be continued or discontinued??

Answer the following questions using the information below: Company A sells a single product. 1,500 units were sold resulting in $30,000 of sales revenue; $21,000 of variable costs, and $2,400 of fixed costs. If sales increase by $20,000, operating Income will increase BY: ⒸA$11,400 OB. None of them OC. $6,000 OD. $12,000

The following information is available for year 1 for Pepper Products: Sales revenue (120,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs. Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits $2,760,000 $164,000 140,000 323,000 985,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 8 percent, but prices are expected to rise by 14 percent. Material costs per unit are expected to increase by 15 percent. Other unit variable manufacturing costs are expected to decrease by 8 percent per unit. Fixed cash costs are expected to increase by 7 percent. PEPPER PRODUCTS Budgeted Income Statement For Year 2 Manufacturing costs: 416,000 147,000 500,000 74,000 $2,749,000 11,000 Variable mar costs will change with unit volume. Administrative cash costs are…