Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

195,000 Fixed expensest Thalassines kataskeves, SA of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several

image text in transcribed
195,000 Fixed expensest Thalassines kataskeves, SA of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 480,000 Variable expensest Varkable manufacturing expenses $ 134,000 Sales comissions 42,000 Shipping 20,000 Total variable expenses Contribution margin 284,000 Advertising (for the bilge pump product line) 20,000 Depreciation of equipment (no resale value) General factory overhead 41,000 Salary of product line manager 117,000 Insurance on inventories Purchasing department 57.000 Total Fedexpenses 350.000 met operating loss $ (74,000) "Common costs allocated on the basis of machine hours. Common costs allocated on the basis of sales dollars Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead ce total Purchasing Department expenses Required: What is the financial advantage disadvantage of discontinuing the bilge pump product line 110,000 5.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Quantitative Analysis Of Finance And Accounting (Vol. 5)

Authors: Lee Cheng Few

1st Edition

9812706283, 9789812706287

More Books

Students also viewed these Accounting questions

Question

9.3 Summarize the four stages of group and team development.

Answered: 1 week ago