Question

In: Accounting

The income statement for Germain Appliances is divided by its two product? lines, Toasters and? Microwaves,...

The income statement for Germain Appliances is divided by its two product? lines, Toasters and? Microwaves, as? follows: Toaster Microwave Total Sales revenue $ 640 comma 000 ?$255,000 $ 895 comma 000 Variable expenses $ 450 comma 000 ?$210,000 $ 660 comma 000 Contribution margin $ 190 comma 000 ?$45,000 $ 235 comma 000 Fixed expenses $ 85 comma 000 $ 85 comma 000 $ 170 comma 000 Operating income? (loss) $ 105 comma 000 $( 40 comma 000 ) $ 65 comma 000 If fixed costs remain unchanged and Germain Appliances discontinues the Microwave? line, how will operating income? change?

Solutions

Expert Solution


Related Solutions

            For Sonya, the following income statements are shown for its two product lines and the...
            For Sonya, the following income statements are shown for its two product lines and the company as a whole: Fruits Vegetables            Total Sales $500,000 $300,000 $800,000 Less: Variable expenses 300,000 270,000 550,000 Contribution margin 200,000 30,000 250,000 Less: Fixed expenses 170,000 80,000 270,000 Operating income $30,000 ($50,000) ($20,000) Even if the Vegetable product line is dropped, some employees have to be kept anyway. Therefore, 10% of the Vegetables line’s fixed expenses will continue. If the Vegetables product line...
Sports Hats, Etc. Has two product lines Baseball Helmets and Football Helmets. Income statement data for...
Sports Hats, Etc. Has two product lines Baseball Helmets and Football Helmets. Income statement data for the most recent period Sales Revenue Total $60,000 Baseball Helmets $310,000 Football Helmets $150,000 Variable Expenses Total. $355,000 Baseball Helmets. $235,000 Football Helmets. $120,000 Contribution Margin Total. $105,000 Baseball Helmets. $75,000 Football Helmets. 30,000 Fixed Expenses Total. $76,000 Baseball Helmets. $38,000 Football Helmets. $38,000 Operating Income (loss) Total. $29,000 Baseball Helmets. $37,000 Football Helmets. $($8,000) Assuming fixed costs remain unchanged how would dropping Football...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (10,000) (9,000) (19,000) Product margin $5,000 $9,000 $14,000 Less common fixed expenses (6,000) Net income $8,000 Pens and pencils are sold...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of...
Income Statements Segmented by Territory Script, Inc., has two product lines. The September income statements of each product line and the company are as follows: SCRIPT, INC. Product Line and Company Income Statements For Month of September Pens Pencils Total Sales $25,000 $30,000 $55,000 Less variable expenses (10,000) (12,000) (22,000) Contribution margin 15,000 18,000 33,000 Less direct fixed expenses (8,000) (6,000) (14,000) Product margin $7,000 $12,000 $19,000 Less common fixed expenses (6,000) Net income $13,000 Pens and pencils are sold...
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...
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...
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines...
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Support Departments Operating Departments Information Technology Operations Claims Processing Administration Sales Information technology — 20...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT