1 Vogel Company produces three models of heating and air conditioning thermostat components. The following table summarizes data about each model: 10 points eBook Selling price per unit Contribution margin per unit Units sold per month Total contribution margin Direct fixed expenses Segment margin Allocated company fixed expenses Operating income (loss) Req A BV19 Req B $ 24 8 2,000 $ 16,000 7,200 $ 8,800 3,333 $ 5,467 Req C HV41 Complete this question by entering your answers in the tabs below. Req D and E $ 40 12 1,000 $ 12,000 5,700 $ 6,300 1,667 $ 4,633 Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? MV12 $ 20 4 On what basis does the $10,000 of company fixed expenses appear to be allocated? On what basis does the $17,000 of company 3,000 $ 12,000 8,100 $ 3,900 5,000 $ (1,100)
Vogel Company produces three models of heating and ait conditioning thermostat components. The following table summarizes data about each model: Required: a. On what basis does the $10,000 of company fored expenses appear to be allocated? b. Calectate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an adventising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be adverthed? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. On what bass does the $10,000 of company fixpd expenses appean to be allocated? Required: a. On what bosis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be acvertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which moder should be advertised? Complete this question by entering your answers in the tabs below. On what bosis does the $10,000 of company fixed expenset appear to be allocated? Required: a. On What basis does the $10,000 of company fixed expenses appear to be allocated? b. Caiculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each model. d. If an odvertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising compaign focusing on a single model were to result in an increase of $15,000 in revenues, which model stiould be advertised? Complete this question by entering your answers in the tabs below. Calculate the effect on total company net income if the MV12 model were discontinued. Required: a. On what basis does the 510,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company not income if the MVI2 model were discontinued. c. Calculate the contribution margin ratio for each medel. d. If an advertising compaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertising campaign focusing on at single modet wore to result in'tan increase of $15,000 in revenucs, which model should be adventised? Complete this question by entering your answers in the tabs below. Cakulate the contribution margin ratio for each model. Required: a. On what basis does the $10,000 of company fixed expenses appear to be allocated? b. Calculate the effect on total company net income if the MV12 model were discontinued. c. Calculate the contribution margin ratio for each modes. d. If an advertising campaign focusing on a single model were to result in an increase of 5.000 units in the quantity of units sold, which model should be actvertised? e. If an advertising campaign focusing on a single model were to result in an increase of $15,000 in revenues, which model should be advertised? Complete this question by entering your answers in the tabs below. d. If an advertising campaign focusing on a single model were to result in an increase of 5,000 units in the quantity of units sold, which model should be advertised? e. If an advertisino campaign focusing on a single medel were to result in an increave of 515,000 in revenues, which madel should be advertised