Question
In: Accounting
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products, A and B:
| Product A | Product B | |||
| Revenue | $87,000 | $95000 | ||
| Total variable costs | 49590 | 48,450 | ||
| Total contribution margin | $37,410 | $46,550 | ||
| Total fixed costs | ||||
| Avoidable | 13,531 | 33,138 | ||
| Unavoidable | 11,999 | 22,092 | ||
| Profit | $11,880 | $-8,680 | ||
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $26,200,
with $5,000 of additional fixed costs, what will be the effect on
firm profits?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$86,000
$95,000
Total variable costs
51,600
55,100
Total contribution margin
$34,400
$39,900
Total fixed costs
Avoidable
13,182
30,206
Unavoidable
12,168
21,874
Profit
$9,050
$-12,180
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $31,500,
with $4,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$88,000
$95,000
Total variable costs
52,800
57,000
Total contribution margin
$35,200
$38,000
Total fixed costs
Avoidable
30,633
15,418
Unavoidable
21,287
14,232
Profit
$-16,720
$8,350
If X Company drops Product A because it shows a loss and is able to
use the vacant space to increase sales of Product B by $32,900,
with $4,200 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$95,000
$86,000
Total variable costs
56,050
43,860
Total contribution margin
$38,950
$42,140
Total fixed costs
Avoidable
17,926
30,173
Unavoidable
14,084
23,707
Profit
$6,940
$-11,740
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $33,700,
with $3,400 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products, A and B: Product A Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$89,000
$95,000
Total variable costs
47,170
54,150
Total contribution margin
$41,830
$40,850
Total fixed costs
Avoidable
28,830
15,837
Unavoidable
28,830
12,443
Profit
$-15,830
$12,570
If X Company drops Product A because it shows a loss and is able to
use the vacant space to increase sales of Product B by $24,000,
with $4,200 of additional fixed costs, what will be the effect...
The following information is for X Company's two products, A and B: Product A Product B...
The following information is for X Company's two products, A and
B: Product A Product B Revenue $93,000 $90,000 Total contribution
margin 39,990 41,400 Total fixed costs 25,750 57,620 Profit $14,240
$-16,220 $13,648 of Product A's fixed costs are avoidable; $29,962
of Product B's fixed costs are avoidable. X Company plans to drop
Product B since it shows a loss and increase sales of Product A by
$34,800. Accompanying the sales increase will be a fixed cost
increase of $5,000....
The following information is for X Company's two products, A and B: Product A Product B...
The following information is for X Company's two products, A and
B:
Product A
Product B
Revenue
$93,000
$90,000
Total contribution margin
39,990
37,800
Total fixed costs
30,430
55,990
Profit
$9,560
$-18,190
$15,215 of Product A's fixed costs are avoidable; $33,034 of
Product B's fixed costs are avoidable. X Company plans to drop
Product B since it shows a loss and increase sales of Product A by
$29,600. Accompanying the sales increase will be a fixed cost
increase of $4,800....
The following information is for X Company's two products - A and B: Product A Product...
The following information is for X Company's two products - A
and B:
Product A
Product B
Sales
$93,000
$90,000
Total contribution margin
40,920
36,000
Fixed costs:
Avoidable
24,000
30,500
Unavoidable
7,000
26,000
Profit
$9,920
$-20,500
The company is considering dropping Product B because of the
$20,500 loss. If X Company drops Product B, it can use the freed-up
resources to increase sales of Product A by $13,000. If X Company
drops Product B and increases sales of A by...
Which of the following amounts will appear on X Company's April Income Statement and Statement of Cash Flows?
X Company is a service company and prepares monthly financial
statements. In March, it billed customers $416,000 for services it
provided; in April, it billed customers $363,000 for services it
provided. In April, the company received $286,000 from its March
customers and $269,000 from its April customers.Which of the following amounts will appear on X Company's April
Income Statement and Statement of Cash Flows?a. both statements, $269,000b both statements, $363,000c Income Statement, $555,000; Statement of Cash Flows,
$779,000d Income Statement,...
Berry Company reported the following on the company's income statement in two recent years
Berry Company reported the following on the company's income statement in two recent yearsParticularsCurrent YearPrior YearInterest expense$320,000$300,000Income before income tax expense3,200,0003,600,000(a)Determine the times interest earned ratio for the current year and the prior year.Round to one decimal place(b) Is the number of times interest charges are earned improving or declining
The following data are for the two products produced by Shakti Company. Product A Product B...
The following data are for the two products produced by Shakti
Company.
Product A
Product B
Direct materials
$
15 per unit
$
24 per unit
Direct labor hours
0.3 DLH per unit
1.6 DLH per unit
Machine hours
0.1 MH per unit
1.2 MH per unit
Batches
125 batches
225 batches
Volume
10,000 units
2,000 units
Engineering modifications
12 modifications
58 modifications
Number of customers
500 customers
400 customers
Market price
$
30 per unit
$
120 per unit...
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