Woodruff Ltd. sells three rockers (Unfinished, Stained, and Painted) that use common facilities. The relevant data concerning
Question:
Required
If $15,000 of the fixed costs allocated to the Painted rockers are avoidable and the company drops Painted rockers from its product line, what will be the impact onincome?
Transcribed Image Text:
Sales Variable costs Contribution margin Fixed costs Operating loss Unfinished $10,000 5,000 5,000 5,000 Stained $30,000 20,000 $10,000 15,000 $ (5,000) Painted S 40,000 25,000 S 15,000 30,000 $(15,000) Total $ 80,000 50,000 $30,000 50,000 $(20,000)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (17 reviews)
If painted rockers are dropped overall operating profit will not be ...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Question Posted:
Students also viewed these Managerial Accounting questions
-
What will be the impact of such sectoring on channel borrowing and what will be its effect on co-channel interference? Explain carefully. What will be the impact of such sectoring on channel...
-
What will be the impact of satellite TV on international advertising?
-
What will be the impact of satellite TV on international advertising?
-
Identify the five multicultural factors requiring special consideration.
-
A $255,000 amount from an RRSP is used to purchase an annuity paying $6000 at the end of each quarter. The annuity provides an annually compounded rate of return of 6%. a. What will be the amount of...
-
Selected balance sheet amounts for ComputerCo, a manufacturer located in Singapore, appear next. All amounts are in millions of Singapore dollars ($). Compute the missingamounts. 2013 2012 Total...
-
Why is a healthy secondary market good for the primary share market?
-
KVS Pharmacy fills prescriptions for a popular childrens antibiotic, Amoxycilin. The daily demand for Amoxycilin is normally distributed with a mean of 200 ounces and a standard deviation of 80...
-
Hamilton Control Systems will invest $90,000 in a temporary project that will generate $32,000, $48,000, and $60,000 for the next three years. After that, it will cost the firm $15,000 to close down...
-
The folowing trial balance of Watervray Co. doss nat balanca. WATERWAY cO. TRIAL BALANCE JUNE 30, 2020 Debit Credit Cash $3.259 Accounts Receivable $2,852 Supplies 1,189 Equipmant 4,189 Accounts...
-
Langer Company has three products (A, B, and C) that use common facilities. The relevant data concerning these three products follow. Required If fixed costs allocated to product line C are not...
-
Finlay Grace Sullivan & Company has two sales offices: one located in Portland, Maine, and one in Portsmouth, New Hampshire. Management is considering dropping the Portland office. The companys...
-
What is meant by foreign currency risk for a company?
-
In 2014, the cost of the most frequently bough consumer goods was 2.364 times higher than in 1982 (the CPI in 2014 was 236.4), and in 2015, the cost of this basket of goods was 2.378 times higher...
-
The first production department of Stone Incorporated reports the following for April. Direct Materials Conversion Units Percent Complete Percent Complete Beginning work in process inventory 63,000...
-
In many countries the proportion of older people is steadily increasing. What problems will this cause for individuals and society? Suggest some measures that could be taken to reduce the impact of...
-
The following events occurred for Favata Company: a. Received $13,000 cash from owners and issued stock to them. b. Borrowed $10,000 cash from a bank and signed a note due later this year. c. Bought...
-
[2] Let's consider the block-spring system as shown in the following figure. From Newton's low, the equation of motion in this system is given by ma = -kx, where a is the acceleration, k is the...
-
The hormone estradiol contains carbon, hydrogen, and oxygen and has a molar mass of approximately 272 g/mol. When 1.15 g of estradiol is subjected to combustion analysis, the results yield 79.26% C...
-
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
-
Four charged particles are located at the vertices of a square of side length \(1 \mathrm{~m}\) in the \(x y\)-plane. Particles 1,2 , and 3 \((q 1=5.00 \mu \mathrm{C}, q 2=-4.00 \mu \mathrm{C}\), and...
-
What is the difference between internal and external forces that affect an e-business? How do they change the way an e-business operates?
-
More than 500 luggage stores in the United States closed in the travel slump that began September 11, 2001. eBags, the online luggage and handbag retailer, was just a few years old at the time, and a...
-
One of the original online travel agency sites, Travelocity, has been bookmarked by millions of people seeking low prices on airline tickets, hotel rooms, cruises, and rental cars. The site books $10...
-
1. The probability that it will snow today is 0.019. What is the probability that it will not snow today
-
Matrix Co., produces a special line of kids action figures. Matrix Co., produces the toys in batches using machines and molds. A separate Setup Department is responsible for setting up machines and...
-
You just got a new job ( congratulations ! ) , and you plan to put 4 % of your annual income of $ 5 0 , 0 0 0 into a retirement account. You expect your income to grow by 3 % each year, and therefore...
Study smarter with the SolutionInn App