Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alard Company produces benders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for

image text in transcribed

Alard Company produces benders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled dollar 340,000, of which dollar 184,000 can be avoided if the blenders are not produced and dollar 142, 500 can be avoided if the coffee makers are not produced. Revenue and variable cost information follow: required: Prepare segmented income statements. Separate direct and common fixed costs. What would the effect be on Alard's profit if the coffee maker line is dropped? The biender line? What would the effect be on firm profits if an additional 10,000 binders could be produced (using existing capacity) and sold for dollar 21.50 on a special-order basis? Existing sales would be unaffected by the special order. Product-Line Analysis What would the effect be on Alard's profit if the coffee maker line is dropped? Profits wil by What would the effect be on Alard's profit if the blender line is dropped? Profits by What would the effect be on firm profits if an additional 10,000 blenders could be produced (using existing capacity) and sold for dollar 21.5 0 on a special order basis? Existing sales would be unaffected by the special order. Profits will by Prepare segmented income statements. Separate direct and common fixed costs. Refer to the list of Amount Descriptions for the exact wording of text items within your income statement. If an amount is negative, first enter a minus sign (-)

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 A Risk Based Approach

Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg

12th Edition

035772187X, 978-0357721872

More Books

Students also viewed these Accounting questions

Question

What is the discount rate? (LO 3)

Answered: 1 week ago