The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $931,000 Variable expenses $ 410,000 Fixed manufacturing expenses $ 345,000 Fixed selling and administrative expenses $ 252,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $212,000 of the fixed manufacturing expenses and $123,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation-whether relevant or not. Training

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The management of Bonga
Corporation is considering dropping
product D74F. Data from the
company's accounting system for this
product for last year appear below:
Sales $931,000 Variable expenses $
410,000 Fixed manufacturing
expenses $ 345,000 Fixed selling and
administrative expenses $ 252,000 All
fixed expenses of the company are
fully allocated to products in the
company's accounting system. Further
investigation has revealed that
$212,000 of the fixed manufacturing
expenses and $123,000 of the fixed
selling and administrative expenses
are avoidable if product D74F is
discontinued. According to the
company's accounting system, what is
the net operating income (loss) earned.
by product D74F? Include all costs in
this calculation-whether relevant or
not.
Training
Transcribed Image Text:The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $931,000 Variable expenses $ 410,000 Fixed manufacturing expenses $ 345,000 Fixed selling and administrative expenses $ 252,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $212,000 of the fixed manufacturing expenses and $123,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. According to the company's accounting system, what is the net operating income (loss) earned. by product D74F? Include all costs in this calculation-whether relevant or not. Training
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