View PoliciesCurrent Attempt in ProgressA company has three product lines, one of which reflects thefollowing results:$244000SalesVariable expenses141000Contribution margin103000Fixed expenses130000$ (27000)Net lossIf this product line is eliminated, 60% of the fixed expenses can beeliminated and the other 40% will be allocated to other productlines. If management decides to eliminate this product line, thecompany's net income willO decrease by $25000.decrease by $103000.increase by $27000.increase by $25000.

Net Income: Net income is the residual amount of earnings of a company for a particular period after…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Current Attempt in Progress A company has three product lines, one of which has the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss Save for Later esc If this product line is eliminated, 60% of the fixed expenses will be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will ! O increase by $35000. O increase by $15000. O decrease by $90000. O decrease by $15000. 1 $221000 Q 131000 A 90000 125000 $(35000) 2 W S #3 с E D $ 4 R % 5 G Search or type URL FL Attempts: 0 of 1 used MacBook Pro T 6 G Y & 7 H Submit Answer X 8 U 9
A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss O decrease by $4000. O increase by $4000 decrease by $82000 $181000 99000 O increase by $48000 82000 130000 If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will $ (48000)
Illustration 1 Sales - Cybernetic Berhad Statement of profit and loss and comprehensive income Ended 2020 Good 240000 Variable cost 144000 Contribution 96000 margin Fixed cost EBIT Analysis Impact of Leverage 80000 16000 current 288000 172000 115200 80000 35200 Compute Degree of operating leverage and explain the answer. weak 320000 200000 120000 80000 40000
Question 3: Sohar Company’s financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000.
9. Assuming the management chooses the first option, which amount the product lines will be eliminated?a. La-Lisab. Jenniec. Jisood. Rose_____ 10. Assuming the management chooses to discontinue the unprofitable product line, what is the net impact to the Company’s overall profit?a. P 7,000b. P 17,000c. P 13,000d. P 23,000
> Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 90000 120000 Year Variable Costs 405000 2019 2020 225000 450000 240000 Calculate: c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. 面
control risk, inherent risk, detection risk, RMM? Explain why? IR/CR yes or no? RMM and DR increase,decrease or no effect? Factor IR Factor CR Factor Why? Comments Impact on RMM Impact on DR 1 Apollo advanced $1.25 million to Larry Lancaster’s secretary. 2 Apollo does not have adequate documentation supporting customer returns of product. 3 Apollo has maintained a positive trend in net income over the past several years, and has a strategic emphasis on meeting profitability targets. 4 Apollo has not allowed your firm to speak with the predecessor auditor about their withdrawal after last year’s engagement. 5 Apollo installed a new computer system mid-year.
Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms: Contribution Variable Margin Fixed OperatingSales Costs Ratio Costs Income (Loss)Firm A $320,000 ? 32% ? $38,300Firm B ? $465,050 ? $118,000 71,950Firm C 134,000 ? 26% 36,700 ?Firm D ? 59,000 20% ? (4,920)
URGENT Show Transcribed Text wwwwww 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Sictions: On Sales Variable costs Contribution margin Fixed costs Net income Tremaine Inc. has three product lines: A, B, and C. A B a. $10,000 b. $20,000 c. $30,000 d. $40,000 Show Transcribed Text $50,000 30,000 20,000 23.000 $ (3,000) J Accessibility: Investigate C S a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by…
The Alligator segment of Wildhorse Specialty Meats is operating at a loss and has the following data: Sales Variable expenses Fixed expenses $7320007 512400 366000 If the Alligator segment is eliminated, what will be the effect on the remaining company? Assume that 50% of the fixed expenses will be eliminated and the rest will be allocated to the segments of the remaining company. O $439200 increase. O $36600 decrease. O $36600 increase. O $183000 increase.
Question 3: Sohar Company's financial information is given in the table below. Year Sales (OMR) Fixed Costs Variable Costs 2019 405000 90000 225000 2020 450000 120000 240000 Calculate: a) PV ratio, ь) В.Е.Р. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 Profit when sales are OMR. 200000. e)
Question 3: Sohar Company's financial information is given in the table below. Sales (OMR) 405000 Variable Costs 225000 240000 Year Fixed Costs 2019 90000 2020 450000 120000 Calculate: a) PV ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. Page 2 ot Sate

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