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ACG2071_CMB-22Spring 00086 Alejandra Diehl 03/31/22 8:31 PM ? Homework: Chapter 8 Homework Question 7, E8-26A (book/static) HW Score: 64%, 16 of 25 points Part 1
ACG2071_CMB-22Spring 00086 Alejandra Diehl 03/31/22 8:31 PM ? Homework: Chapter 8 Homework Question 7, E8-26A (book/static) HW Score: 64%, 16 of 25 points Part 1 of 3 Points: 0 of 3 Save Suppose Smithers Company is considering discontinuing its organic dried fruit product line. Assume that during the past year, the organic dried fruit's product line income statement showed the following: (Click the icon to view the income statement data.) i (Click the icon for additional information.) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Smithers Company discontinue the organic dried fruit product line? Begin by preparing a contribution margin income statement for the organic dried fruit's product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue Less: Contribution margin Less: Operating income (loss) Help me solve this Video Get more help - Clear all Check answerACG2071_CMB-22$pring 00086 Alejandra Diehl 03/31/22 8:31 PM C?) Question 7, E8-26A (book/static) ) Hw Score: 64%, 16 of 25 points Homework: Chapter 8 Homework Pam o, a 0 Points: 0 of 3 Suppose Smithers Company is considering discontinuing its organic dried fruit product line. Assume that during the past year, the organic dn'ed imit's product line income statement showed the following: a (Click the icon to view the income statement data.) 0 (Click the icon for additional information.) lithe company decides to discontinue the product line, what will happen to the company's operating income? Should Smithers Company discontinue the organic dried fruit product line? Begin by preparing a contribution margin income statement for the organic dried fr Data table Sales revenue Less: B Sales revenue $ 5.200,000 Contribution margin Less: Less: Cost of goods sold 6500.000 Gross prot (1,300,000) Operating income (loss) Less: Operating expenses 1500,00!) Operating Income (loss) 3 (2.3001300) Help me solve this Video Get more help . w Question 7, E8-26A (book/static) > HW Score: 64%, 16 of 25 points E Homework: Chapter 8 Homework par\" on 0 points: UofS Suppose Smiihers Company is considering discontinuing its organic dried fruit product line. Assume that during the past year, the organic dried fruits product line income statement showed the following: a (Click the icon to view the income statement data.) 0 (Click the icon for additional information.) If the company decides to discontinue the product line, what will happen to the company's operating income? Should Smithers Company discontinue the organic dried fruit product line? Begin by preparing a contribution margin income statement for the organic dried fruit's product line. (Use a minus sign or parentheses to enter a loss.) Sales revenue Less: More info Contribution margin Less: Fixed manufacturing overhead costs account for 40% of the cost of goods, while only 30% of the operating expenses are xed. Since the organic dried fruit line is Operating income (loss) = just one of the company's fruit operations, only $750,000 of direct xed costs (the majority of which is advertising) will be eliminated if the product line is disoontinued. The remainder of the xed costs will still be incurred by the oompany. Help me solve this Video Get more help - m Prepare an incremental analysis to show how the discontinued organic dried fruit product line will affect Smithers Company's operating income. (Enter a "0" in an input eld if there is no expected change as a result of discontinuing organic dried fruit.) Incremental Analysis for Discontinuation Decision Total Contribution margin lost if organic dried fruit is discontinued Less: Fixed cost savings if organic dried fruit is discontinued Operating income if organic dried fruit is discontinued Help me solve this Video Get more help . Clear all If Smithers Company discontinued the organic dried fruit product line, it will income. Therefore, Smithers Company discontinue this product line. Help me solve this Video Get more help - Clear all Check
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