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Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company...
Differential Analysis Report for a Discontinued Product
The condensed product-line income statement for Porcelain Tableware Company is as follows:
|
PORCELAIN TABLEWARE COMPANY Product-Line Income Statement |
||||||||
| Bowls | Plates | Cups | ||||||
| Sales | $658,000 | $903,000 | $272,000 | |||||
| Cost of goods sold | (271,000) | (335,000) | (154,000) | |||||
| Gross profit | $387,000 | $568,000 | $118,000 | |||||
| Selling and administrative expenses | (289,000) | (344,000) | (144,000) | |||||
| Operating income (loss) | $98,000 | $224,000 | $(26,000) | |||||
Fixed costs are 42% of the cost of goods sold and 16% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be significantly affected if the Cups line were discontinued.
a. Prepare a differential analysis report for all three products.
| PORCELAIN TABLEWARE COMPANY | |||
| Product Income | |||
| Differential Analysis Report | |||
| Bowls | Plates | Cups | |
| Differential revenue from monthly sales: | |||
| Revenue from sales | $ | $ | $ |
| Differential costs of monthly sales: | |||
| Variable cost of goods sold | $ | $ | $ |
| Variable selling and administrative expenses | |||
| $ | $ | $ | |
| Monthly differential income from sales | $ | $ | $ |
Solutions
Expert Solution
By mistakely, we can write
selling and distribution expense, please consider them as selling
and administrative expenses.
ekkarill92 answered 2 years agoRelated Solutions
Differential Analysis Report for a Discontinued Product The condensed product-line income statement for Porcelain Tableware Company...
Differential Analysis Report for a Discontinued Product
The condensed product-line income statement for Porcelain
Tableware Company is as follows:
PORCELAIN TABLEWARE COMPANY
Product-Line Income Statement
Bowls
Plates
Cups
Sales
$660,000
$885,000
$276,000
Cost of goods sold
(261,000)
(332,000)
(153,000)
Gross profit
$399,000
$553,000
$123,000
Selling and administrative expenses
(300,000)
(357,000)
(157,000)
Operating income (loss)
$99,000
$196,000
$(34,000)
Fixed costs are 35% of the cost of goods sold and 16% of the
selling and administrative expenses. Porcelain Tableware assumes
that fixed...
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Hats
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Mufflers
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$27,100
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Gross profit
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$56,500
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Gross profit
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Operating expenses
144,000
Loss from operations
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fixed factory overhead costs and that 23% of the operating expenses
are fixed. Since Royal Cola is only one of many products, the fixed...
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Cost of goods sold
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Operating expenses
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fixed factory overhead costs and that 23% of the operating expenses
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Cost of goods sold
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Cost of goods sold
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Gross profit
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$22,900
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The condensed product-line income statement for Suffolk China
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Bowls
Plates
Cups
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$64,900
$89,400
$26,700
Cost of goods sold
25,700
33,400
14,300
Gross profit
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$56,000
$12,400
Selling and administrative expenses
30,200
35,000
15,700
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PORCELAIN TABLEWARE COMPANY Product-Line Income Statement Bowls Plates Cups Sales $653,000 $898,000 $259,000 Cost of goods...
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Product-Line Income Statement
Bowls
Plates
Cups
Sales
$653,000
$898,000
$259,000
Cost of goods sold
(257,000)
(322,000)
(144,000)
Gross profit
$396,000
$576,000
$115,000
Selling and administrative expenses
(287,000)
(359,000)
(149,000)
Operating income (loss)
$109,000
$217,000
$(34,000)
Fixed costs are 45% of the cost of goods sold and 15% of the
selling and administrative expenses. Porcelain Tableware assumes
that fixed costs would not be significantly affected if the Cups
line were discontinued.
a. Prepare a differential analysis report for...
The condensed product-line income statement for Dish N’ Dat Company for the month of March is...
The condensed product-line income statement for Dish N’ Dat
Company for the month of March is as follows: Dish N’ Dat Company
Product-Line Income Statement For the Month Ended March 31, 2016 1
Bowls Plates Cups 2 Sales $70,960.00 $105,450.00 $31,760.00 3 Cost
of goods sold 32,990.00 42,680.00 16,710.00 4 Gross profit
$37,970.00 $62,770.00 $15,050.00 5 Selling and administrative
expenses 27,350.00 42,530.00 16,670.00 6 Income from operations
$10,620.00 $20,240.00 $(1,620.00) Fixed costs are 30% of the cost
of goods sold...
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