7 14.000.000 133 points MARIETTE COMPANY Income statement-ne et Sales Variable costs Direct waterials $ 350,000 Direct labor 900.000 Variable overhead 700.000 Variable selling and dinistrative 400,000 Total variable costs Contribution margin Fixed costs Direct 775,000 Indirect 700,00 Total fixed costs Net Income 3.850,000 1,150,000 Book 1.475.000 $(525,000 1. If canoes are discontinued, calculate the net income lost or gained 2. Should management discontinue the manufacturing of cances? References Complete this question by entering your answers in the tabs below. Required: Required 2 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zers where appropriate) Keep the department Eliminate the department Sales Expertos Total expenses Net income (los) Mave VedaunchUrl=https%253A%252F% 10 Chapter 10 Homework 8 Part 1 of 2 Required information [The following information applies to the questions displayed below! Suresh Co. expects its five departments to yield the following income for next year 1.33 points Dept. $78,000 Dept. N $ 40,000 Dept. o $71,800 Dept. $57, Dept. T $ 39,000 Total 5285, eee Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 15,300 56,200 71.500 $ 6, see 43.000 19,200 62,200 5(22, 20e) 21,900 5.100 27,200 $43, 19,5ee 43,800 63,300 $(6,300) 47,780 17,500 65,200 $(25,20 147,480 243.000 209,400 $ (4.400) bio Hint Recompute and prepare the departmental income statements including a combined total column for the company under each of the following separate scenarios. Print (1) Management eliminates departments with expected net losses o Hoferences DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept.M Dept. N Dept. o Dept. Dept. 1 TOLAT Sales Expenses Avoidable Unavoidable Total expenses Net income (los) 9 Part 2 of 2 133 points Required information [The following information applies to the questions displayed below] Suresh Co expects its five departments to yield the following income for next year Dept. Dept. N Sales Dept. o Dept. 578,000 $ 40,000 Dept. 1 $71.000 Expenses $ 39,000 Avoidable 15,300 45,000 21,900 Unavoidable 19,500 56,200 47,700 19,200 5.300 45,00 Total expenses 17.500 71,500 62,200 27,200 63,00 65,00 Net Income (los) 5.6,500 $(22,200) 543,000 5(6.100) $(26,00) Total 1265.000 147.400 142.000 289,400 $ 4,400) Doo Hint Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios (2) Management eliminates departments with sales dollars that are less than avoidable expenses Wences DEPARTMENTS WITH LESS SALES THAN AVOIDABLE EXPENSES ELIMINATED Dept.M Dept. N Depo Dept. P Dept T Total Sales Expenses Avoidable Unavoidable Total expenses Not Income (los)