Question
A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands) Required information Required information A condensed income statement for Gilbert, Inc. follows:
A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands)
Required information
Required information
A condensed income statement for Gilbert, Inc. follows: (amounts are shown in thousands)
| Products | F | G | H | Total | ||||||||||||
| Sales (total) | $ | 260 | $ | 186.0 | $ | 380 | $ | 826.0 | ||||||||
| Total Unit-level Costs | (144 | ) | (161.2 | ) | (212 | ) | (517.2 | ) | ||||||||
| Contribution Margin | 116 | 24.8 | 168 | 308.8 | ||||||||||||
| Company-wide Facility-Level Costs | (26.2 | ) | (31.2 | ) | (52 | ) | (109.4 | ) | ||||||||
| Income (Loss) | $ | 89.8 | $ | (6.4 | ) | $ | 116 | $ | 199.4 | |||||||
Gilbert's management is considering whether to eliminate manufacturing product G at the beginning of the next year. The elimination will have no effect on the sales or unit-level costs of products F and H. The change in income that would result from eliminating product G is? Please clearly show your work step by step..
Multiple Choice
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$31,200 increase
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$24,800 decrease
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$6,400 increase
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$6,400 decrease
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
