Dirt Mountain Racing Total Bikes Bikes Bikes Sales ... $300,000 $90,000 $150,000 $60,000 Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 Contribution margin 180,000 63,000 90,000 27,000 Fixed expenses: Advertising, traceable... Depreciation of special equipment . Salaries of product-line managers. Allocated common fixed expenses". 30,000 10,000 14,000 6,000 23,000 6,000 9,000 8,000 35,000 12,000 13,000 10,000 60,000 18,000 30,000 12,000 Total fixed expenses.. 148,000 46,000 36,000 $ 24,000 $ (9,000) 66,000 Net operating income (loss). $ 32,000 $17,000 "Allocated on the basis of sales dollars.

Required information Skip to question   [The following information applies to the questions displayed below.]   Accents Associates sells only one product, with a current selling price of $150 per unit. Variable costs are 30% of this selling price, and fixed costs are $19,600 per month. Management has decided to reduce the selling price to $145 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.     At the current selling price of $150 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $10,400?

A manufacturer is considering eliminating a segment because it shows the following $6,100 loss. All $20,300 of its variable costs are avoidable, and $36,700 of its fixed costs are avoidable.

Case Impairment   Panoramic Equiptindo Company Limited (PE) is an experienced original equipment manufacturing (OEM) in cameras. However, it focuses on film camera production while its production of compact digital camera (CDCs) accounts for only 10% of its production. PE realises that the market for traditional film camera is declining in terms of demand and profit margin because costumers are shifting to digital camera. In view of the market sentiment, PE is considering the following two options: Option 1: Upgrading as an OEM manufacturer for consumer CDCsFollowing this option, PE would need to invest at least $40 million to replace its existing production facilities to meet costumer requirements. Panoramic Equiptindo would remain principally an OEM manufacturer for costumer CDCs of major brands. Option 2: Becoming an original brand manufacturer (OBM) for budget CDCs for the PCR using the “Marvelous” brand. Following this option. Panoramic Equiptindo could retain its manufacturing…