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#4 Problem - Unprofitable Segment Below is the condensed segmented income statement for three lines of baseball bats produced by the Abel Company baseball bats:
#4 Problem - Unprofitable Segment Below is the condensed segmented income statement for three lines of baseball bats produced by the Abel Company baseball bats: wood, aluminum, and hard rubber. Each correct answer is worth 1 _point(s). Wood Aluminum Hard Rubber Total Sales 500,000 200,000 65,000 765,000 25,000 40,000 58,000 23,000 175,000 60,000 7,000 242,000 Variable expenses Contribution margin Fixed expenses Net Income (Loss) 5,000 5.000 22,000 32,000 100,000 25,000 (15,000) $110,000 What is total net income if the hard rubber line is dropped: a. 1. When all the fixed expenses for the hard rubber line are not avoidable? $125,000 b. $103,000 $105,000 d. $140,000 C. a. 2. When all the fixed expenses for the hard rubber line are avoidable? $125,000 b. $103,000 $105,000 d. $140,000 c. 3. What should be done with the hard rubber line, if fixed expenses are avoidable? a Keep. b. Eliminate. #4 Problem - Unprofitable Segment Below is the condensed segmented income statement for three lines of baseball bats produced by the Abel Company baseball bats: wood, aluminum, and hard rubber. Each correct answer is worth 1 _point(s). Wood Aluminum Hard Rubber Total Sales 500,000 200,000 65,000 765,000 25,000 40,000 58,000 23,000 175,000 60,000 7,000 242,000 Variable expenses Contribution margin Fixed expenses Net Income (Loss) 5,000 5.000 22,000 32,000 100,000 25,000 (15,000) $110,000 What is total net income if the hard rubber line is dropped: a. 1. When all the fixed expenses for the hard rubber line are not avoidable? $125,000 b. $103,000 $105,000 d. $140,000 C. a. 2. When all the fixed expenses for the hard rubber line are avoidable? $125,000 b. $103,000 $105,000 d. $140,000 c. 3. What should be done with the hard rubber line, if fixed expenses are avoidable? a Keep. b. Eliminate
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