Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All itsvariable costs are avoidable, and $345,000 of its fixed costs are avoidable.Segment Income (Loss).SalesVariable costsContribution marginFixed costsIncome (loss)(a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be continued or eliminated?QAZComplete this question by entering your answers in the tabs below.Required A Required BCompute the income increase or decrease from eliminating this segment.Segment Elimination AnalysisIncome (loss)::FI2WS-0%$ 1,156,400826,000330,400394,000$ (63,600)F23EDContinue80F3MAR29< Required A$4REliminateQF4F%5F5Income Increase(Decrease)< PrevTRequired B >G10 of 11n tv6F6Y&7H«F7Nex>U8DIIJFBDD9XCVBNMF9KAOF100P

The variable costs can be avoided completed on the elimination of any segment. The fixed costs can…

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) $ 1,156,400 826,000 330,400 394,000 $ (63,600) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B

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) $ 1,156,400 826,000 330,400 394,000 $ (63,600) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 9PA: Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a...

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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 $300,000 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? Required A Required B Complete this question by entering your answers in the tabs below. $ 980,000 700,000 280,000 340,000 $ (60,000) Segment Elimination Analysis Compute the income increase or decrease from eliminating this segment. Income Increase (Decrease) Sales Variable costs Contribution margin Fixed costs Income (loss) Continue $ 0 Eliminate 0 $
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 incomo
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 $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
Central 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 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
Central 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 ?and 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 S90,000 48,000 42,000 18,000 9.000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1.700) increase by $600 increase by S1,700 () decrease by S6,000 decrease by S9,000 ) increase by S2,400 ()
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 by
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)
Which of the following statements is false? (You may select more than one answer.)a. The same cost can be traceable or common depending on how the segment isdefined.b. In general, common fixed costs should be assigned to segments.c. If a company eliminates a segment of its business, the costs that were traceable tothat segment should disappear.d. If four segments share $1 million in common fixed costs and one segment is eliminated, the common fixed costs will decrease by $250,000.
Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. A. What Is the total income if all titles were produced? B. If Title X was dropped, what would be the effect on Net Income? C. How much did Title X Contribute to Fixed Costs? D. Determine the cost and the amount that will remain even it Title X is dropped? E. Which costs and amount will be eliminated if Title X is dropped?
Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000