Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097,600 784,000 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Required A Required B 313,600 376,000 $ (62,400) Complete this question by entering your answers in the tabs below. Income (loss) Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate < Required A Income Increase (Decrease) Required B >
Q: [The following information applies to the questions displayed below.] Green Planet Corporation has…
A: Introduction: When preferred stock are cumulative in nature and in any year company is not in a…
Q: Mint Company is preparing a flexible budget for next year and requires a breakdown of the factory…
A: Variable Cost :— It is the cost that changes with change in cost driver. Variable cost per cost…
Q: Determine m, n, and i for money earning 4.67% compounded quarterly for 5 years and 6 months. ma…
A: The worth of an investment or asset on a certain date in the future is referred to as its "future…
Q: Stockholders' equity of Ernst Company consists of 80,000 shares of $5 pa 280,000 shares of $1 par…
A: Solution.. As the Preferred stocks are Cumulative therefore, Arrear of preferred dividend will…
Q: Stockholders' equity Paid-in capital Preferred stock, cumulative, 11,700 shares authorized, 7,000…
A: Investments that show ownership in a company include common stock. The board of directors is chosen…
Q: BMI's East Division has a cost of capital of 20 percent. Selected financial information for the…
A: 1. EXPENSE IN ONE YEAR = $600,000 / 3 = $200,0002. ADJUSTED PROFIT = $340,000 + $200,000 = $540,000…
Q: Provide the missing information (A-H) in the table. Use the formulas learned in Chapter 10. (Round…
A: The margin ratio - is one of the ratios that measure profitability of the entity. It compares the…
Q: Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded…
A: The worth of an investment or asset on a certain date in the future is referred to as its "future…
Q: Admiral Industries commenced operations in 20Y1 and prepaid two expenses in 20Y1. On April 1,…
A:
Q: Can subparts 4 and 5 be answered on this problem
A: Net present value is used to calculate the current total value of future payments. It is the…
Q: would be 80% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (Enter…
A: Requirement:- 1)Preparation of a make or buy analysis of costs for this unit as follows under:-
Q: Problem 6: The capital accounts of Sangonomiya Kokomi Company on December 31, 2020 were follows:…
A: The shareholder's equity comprises of paid in capital and retained earnings of the business. The…
Q: Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its…
A: The manufacturing overhead costs include the indirect costs incurred during the period. The…
Q: The Sarbanes-Oxley Act (SOX)
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the remaining…
Q: Bill Clinton reportedly was paid $15.0 million to write his book My Life. The book took three years…
A: The term "net present value" (NPV) refers to the difference between the present value of cash…
Q: vities: flows P1. Cash Flows from Operating Activities: Direct Method Tanucci Clothing Store's…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: Problem 7: In January 2020, Golden Company invested in P900,000 equity securities representing 15%…
A: The question asked to compute the profit on the sale of an investment, and, prepare the journal…
Q: The selling price is $50 per unit. Breakeven volume is 2,000 units. Current sales volume is 2,500…
A: the simple income statement is prepared by the company in order to find the profit that is made by…
Q: $1000 par value bond pays coupons semiannually at a rate of 5% convertible semiannually over the…
A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…
Q: The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited…
A: A partnership is an agreement between two or more persons or entities to run a business together,…
Q: Accounting for share investments Check Figure 2: Carrying value per share, $19.63 River Outdoor…
A: Stock investment It is a process under which shares are bought in a public company. Those shares are…
Q: ackie is a 50% partner in The Lunch Box. She is to receive a guaranteed payment of $30,000. If the…
A: Introduction:- A partnership is an agreement between two or more people sign a partnership agreement…
Q: July August September October $ 54000 68,000 90,000 $ 60,000 58,000 30,000 44,000 Additional…
A: The preparation of cash budget in all the cash inflow and outflow during the particular period and…
Q: Jack Hammer Company completed the following transactions. The annual accounting period ends December…
A: Journal entries recording is the initial step of accounting process, under which atleast one account…
Q: 4) Listen The general ledger update in the order entry/sales process with a debit to Cost of goods…
A: Answer:- General ledger:- An organization utilizes a general ledger-a group of numbered accounts to…
Q: Swiss Industries imports raw nuts from farmers at a cost of $8.40 per pound. Swiss can resell the…
A: The income statement refers to the statement showing the profit and loss born by an organization…
Q: The Mulenga & Co. Ltd is a single-product manufacturing company, which uses a marginal costing…
A: Marginal costing It is the cost to produce one additional unit of production. This helps determine…
Q: Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for…
A: The transaction price is the remuneration to which an entity expects being entitled, less amounts…
Q: 15. The income statement of Osborne Company reported net income of $500,000 for the year ended…
A: Answer:- Retained earnings meaning:- The amount of profit a business keeps after paying all of its…
Q: Golnesa sold her interest in a partnership for $27,000 cash when her outside basis was $9,000. She…
A: RECOGNISED GAIN OR LOSS : = SALE PRICE OF HER INTEREST + AMOUNT OF LIABILITIES RELIEVED - OUTSIDE…
Q: Horatio and Calleigh are partners in a private investigations firm. Each partner's outside basis in…
A: Introduction:- Partnership is type of business, where two or more people formed together to form a…
Q: Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of…
A: Variable overhead rate variance: Variable Overhead Rate Variance is the difference between what the…
Q: help trouble finding a solution
A: Medical expenses add up for Self, spouse, or dependent's medical expenses cost receipts these could…
Q: vered cashflow is 35,000,000 a year in perpetuity and the unlevered value of assets is 545,000,000.…
A: Answer : Debt to value 30% Equity to value 70% Unlevered assets value $545,000,000…
Q: Jay Corporation has decided to prepare contribution income statements for internal planning.…
A: Contribution margin income statement is prepared for internal purpose only. The main objective of…
Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…
A: Answer to Question (a):- The NPV of the project is $5.28 million…
Q: Month January February March April Estimate unit variable costs: $240/unit $73.33/unit Units…
A:
Q: Acar loan of $18,290 is to be repaid by equal monthly payments for three years. The interest rate is…
A: Lets understand the basics. When asset is purchased on loan then asset is needed to record at cost.…
Q: 4. There is a difference in return on Total Assets and the return on Total Equity. a. What is the…
A: a. The difference between the return on Total Assets and the return on Total Equity is that the…
Q: Apply mathematical skills around cost structures and appropriate equations to answer the following,…
A: We know that Cost of Sale = Opening Inventory + Purchases - Closing Inventory Markup per unit can be…
Q: Bruce Corporation makes four products in a single facility. These products have the following une…
A: Contribution Margin=Selling Price-Variable Costs
Q: Third Party Payer Lock-in programs can use restrictions when their clients attempt to fill…
A: Third-party payer lock-in programs are designed to help control rising health care costs associated…
Q: Dan borrowed $906.00 today and is to repay the loan in two equal payments. The first payment is in…
A: Let the equal instalment be = X Now the PV of both X should be equal to the loan amount PV =…
Q: Use the following information for the Quick Studies below. (Algo) [The following information applies…
A: The Statement of Financial Position - The statement of financial position is the position of the…
Q: Increasing the down payment on a mortgage reduces both the size of the monthly payments and the…
A: Loan is a financial arrangement in which one party provides a lump sum amount to other party. The…
Q: Fiona cleans offices. She is allowed 7 seconds per square foot. She cleans building A, which is…
A: Break in shift means it is a time to rest or relax for the workers in a day or night shift which is…
Q: Lansing Company’s 2018 income statement and selected balance sheet data (for current assets and…
A: The cash flow from various activities during the day are classified as operating, investing and…
Q: ames Jim Inc. produces the following three products: T-Shirts Hats Sweatshirts Selling price per…
A: A break-even point is used in several commercial and financial contexts. In accounting, it is the…
Q: Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin…
A: PROFIT MARGIN = contribution margin - fixed cost whereas; contribution margin = revenue - variable…
Q: Astor Industries plans to automate its production process. The new equipment will cost $460,000 and…
A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $345,000 of its fixed costs are avoidable. Segment Income (Loss). Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Q A Z Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income (loss) :: FI 2 W S -0% $ 1,156,400 826,000 330,400 394,000 $ (63,600) F2 3 E D Continue 80 F3 MAR 29 G 10 of 11 n tv 6 F6 Y & 7 H « F7 Nex> U 8 DII J FB DD 9 XCVBNM F9 K A O F10 0 PA manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs are avoidable, and $39,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 63,900 21,300 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? 42,600 49,000 (6,400) Complete this question by entering your answers in the tabs below. Segment Elimination Analysis Sales Variable costs Contribution margin Required A Required B Compute the income increase or decrease from eliminating this segment. Fixed costs Income (loss) Continue S $ 63,900 21,300 42,600 49,000 (6,400) Eliminate
- A segment of a company reports the following loss for the year. All $192,500 of its variable costs are avoidable, and $93,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 275,000 Variable costs 192,500 Contribution margin 82,500 Fixed costs 101,000 Income (loss) (18,500) (a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be eliminated?A manufacturer is considering eliminating a segment because it shows the following $6,300 loss. All $21,100 of its variable costs are avoidable, and $38,500 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A $ 63,300 21,100 42,200 48,500 (6,300) Required B Compute the incomoCentral Industries has three product lines: A, B, and C. The information given below is available. Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C Pand does not replace it. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48.000 42,000 18,000 9,000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 $(1.700) increase by $600 increase by $1,700 decrease by S6,000 decrease by S9,000 () increase by $2,400 ()
- A segment of a company reports the following loss for the year. All $178,500 of its variable costs are avoidable, and $110,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 255,000 178,500 76,500 115,000 (38,500) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue Eliminate $ 255,000 178,500 76,500 115,000 $ (38,500)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 byGion Company is considering ellminating its Windows division, which reported a loss for the prior year of $92000 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,122,000 987,000 135,000 232,000 $ (97,000) If the Windows division is dropped, all of its variable costs are avoidable, and $150,800 of its fixed costs are avoidable. The impact on Glon's operating income from eliminating this business segment would be
- Product Tango has a total revenue of $193,000, variable costs of $148,300, and fixed costs of $61,900. This creates a loss of $17,200 Primary Co. is trying to decide whether it should keep or discontinue Product Tango. Prepare a differential analysis to support your decision. Assume fixed costs are unaffected by the decision. (Fill out the chart, and answer question on bottom) Keep Discontinue Revenue 1 of 7 2 of 7 VC - 3 of 7 - Question Blank 4 of 7 CM = Question Blank 5 of 7 = Question Blank 6 of 7 (Keep is the more profitable decision, Both are equally profitable, or Discontinuation is the more profitable situation)Your Company is considering discontinuing a product. Data from the company's accounting system appear below: Sales $240,000 Variable costs $101,000 Fixed manufacturing costs $ 94,000 Fixed selling & administrative costs $ 55,000 $41,000 of the fixed manufacturing expenses and $25,000 of the fixed selling and administrative expenses cannot be avoided if the product is discontinued. What would be the effect on the company's overall net operating income if the product were dropped?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??