Fixed costs (32,000) (12,400) (24,780) (69,180) Total cost of goods sold $(80,000) $(31,000) $(61,930) $(172,930) ross profit $130,000 $124,000 $125,070 $379,070 perating expenses: Variable expenses $(5,000) $(7,750) $(53,090) $(65,840) Fixed expenses (89,000) (77,000) (106,200) (272,200) Total operating expenses $(94,000) $(84,750) $(159,290) $(338,040) Operating income (loss) $36,000 $39,250 $(34,220) $41,030 omplete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products F required, use a minus sign to indicate a loss. Differential Analysis Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) Discontinue Rug Yarn (Alternative 2) Differential Effects (Alternative 2) Revenues Costs: Variable Fixed Profit (loss)

Golden Tours, Inc., operates tours throughout the United States. A study has indicated that some of the tours are not profitable, and consideration is being given to dropping these tours to improve the company’s overall operating performance.      One such tour is a two-day Historic Mansions bus tour conducted in the southern states. An income statement from a typical Historic Mansions tour is given below:             Ticket revenue (110 seat capacity × 45%   occupancy × $60 ticket price per person) $ 2,970    100 %   Variable expenses ($18 per person)   891    30 %             Contribution margin $ 2,079    70 %             Tour expenses:              Tour promotion $ 650             Salary of bus driver   330             Fee, tour guide   690             Fuel for bus   130             Depreciation of bus   330             Liability insurance, bus   180             Overnight parking fee, bus   50             Room and meals,…

What is the impact on profit for the year if Nardin Outfitters accepts the special order? (Enter your answers in thousands rounded to 1 decimal place. (i.e., 5, 400, 400 should be entered as 5, 400.4). Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.) Nardin Outfitters has a capacity to produce 18, 500 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $ 1,550 per tent. The cost of producing and selling one tent follows: Variable manufacturing costs $ 570 Fixed manufacturing costs 155 Variable selling and administrative costs 145 Fixed selling and administrative costs 115 Total costs $ 985 The company has received a special order for 1,800 tents at a price of $730 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $58 per tent. The special…

You are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the inventory cost based on purchases and sales for the month.  See attached spreadsheet. nventory Weighted Date Purchase/Sale Total Cost Average Cost 1-Oct Purchase     1-Oct Sale     3-Oct Purchase     4-Oct Sale     4-Oct Sale     4-Oct Purchase     7-Oct Sale…

A music store sells new instruments.  The store also sells used instruments for people who are willing to give the store part of the sales price.  The sale of used instruments, called sales commissions, amount to about one-fourth [25%] of total income.  On the firm’s classified income statement under the “Revenue” heading are both New Instrument Sales and Sales Commissions.  Do you agree with presentation of these in the Income Statement?  Why or why not?