Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A question I'm comparing from an end of the chapter 9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed

image text in transcribed

A question I'm comparing from an end of the chapter

9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed segmented income statement for a recent period follows: Medium $200,000 110,000 90,000 55,000 S 35,000 Large $200,000 125.000 SmallTotal Sales Variable expenses Contribution margin Fixed expenses Net income (loss) S105,000 $505,000 300,000 205,000 157000 $(7,000) 48000 65,000 40,000 47.000 75,000 $20,000 Assume none of the fixed expenses for the small-size crock pot are avoidable. What will be total net income if the small-size crock pot line is dropped? a. $47,000 b. $13,000 c. $8,000 d. $55,000 9Sardine Kitchen Company produces three sizes of crock pots: small, medium & large. A condensed segmented income statement for a recent period follows: Medium $200,000 110,000 90,000 55,000 S 35,000 Large $200,000 125.000 SmallTotal Sales Variable expenses Contribution margin Fixed expenses Net income (loss) S105,000 $505,000 300,000 205,000 157000 $(7,000) 48000 65,000 40,000 47.000 75,000 $20,000 Assume none of the fixed expenses for the small-size crock pot are avoidable. What will be total net income if the small-size crock pot line is dropped? a. $47,000 b. $13,000 c. $8,000 d. $55,000

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

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

14th Canadian edition

134613112, 134835018, 9780134885254 , 978-0134613116

More Books

Students also viewed these Accounting questions