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
ekkarill92 answered 1 year agoRelated 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...
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the...
Boots Plus has two product lines: Hiking boots and Fashion
boots. Income statement data for the most recent year follow:
Total
Hiking
Fashion
Sales Revenue
$480,000
$340,000
$140,000
Variable expenses
$366,000
$235,000
$131,000
Contribution margin
$114,000
$105,000
$9,000
Fixed expenses
$76,000
$38,000
$38,000
Operating income(loss)
$38,000
$67,000
$(29,000)
Assuming fixed costs remain unchanged, how would discontinuing
the Fashion line affect operating income?
A.
Increase in total operating income of $29,000
B.
Increase in total operating income of $114,000
C.
Decrease...
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...
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