Appendix II: Income statements by division for June Autosme . A B9 2. C ... MAA-2402E-18502-01.Task Home Insert Draw Page Layout Formulas Data Review View 9 Tell me Tables Chairs Desks Total Cond Callbri (Body) - 11 - A A % " Format as T Sales 980,000 560,000 250,000 1,790,000 Call Styles Variable costs 490,000 310,000 165,000 Contribution margin 965.000 490,000 250,000 65,000 825,000 G23 XVfx Fixed costs Advertising 12,400 13,000 16,000 41,400 UNIT 2 - TASK-BASED SIMULATION #1 Amortization $5.000 51.000 35,000 151,090 Insurance 3.400 2 800 3,800 10,000 Task 2 Repairs and maintenance 45,000 14,500 23.500 13.003 Office expenses The shareholders would now like a quantitative analysis of the scenario In which the desk 3,200 3,800 10.500 mplea the schedule below Rant he of products is dropped Jacqueline has asked Lorenzo In complete 20,000 18,000 10,000 48 000 that calculates the Incremental increase (decrease) to monthly operating income if the desk 3.500 2.700 division is closed. Appendixas Il and I provide additional information. Wages and salaries - supervisors 12,000 10.000 11,000 33.00 Wages and salaries - Instructions: 13,000 12.800 7,400 33 20 . In the table, in Column B, Rows 2 and 4-15, enter the appropriate dollar amount for the Wagas and salaries - and ville for a cell enter "0 " Enter all Increases Item doscribed in Column A. I there is no value for a cell, anter admin 35,000 28.000 20,000 83,000 In operating income an are and decreases in operating income as 212,500 185,600 134,000 533,100 negative numbers (for example, -100). Round up to the nearest whole dollar. Operating Income (loss) 277,500 63,400 (49,000) 291,900 . Based on the results of the analysis, recommend whether the desk line should be ted, by selecting the appropriate conclusion in the drop-down list. Incremental increase (decrease) to monthly operating income Increase (decrease) . monthly operating Description 2 Lost contribution margin from dropping the daak division 9 3 Avoidable fixed costs 0 4 Advertising 3 5 Amorization 2 Insurance 7 Repaira and maintenance CPA 3/4 #CPA Caca expenses 9 Rent 27 11 Wages and salarias - supervisors 23 12 Wagon and salaries - saling 13 Wages and salaries - admin ming - Unit 2 - Tank Based 30 1 14 Incremental contribullan margin on lablen 15 Incremental contribution margin on chairs Incremental monthly operating love thly operating income (loss) if desk division Appendix Ill: Email from Larry Blake, production accountant 13 is eliminated Subject: Costs related to eliminating the desk division Decision about whether to eliminate the desk division: FROM Lorry Blake, Production Accountant Saled your answer 37 TO: Lorenzo DeMami Drop the desk division, as dropping it would result in incremental operating income for 1 the company. Keep the desk division, as dropping it would result in incremental operating loss for the Good morning. As par your request, here is other information that I have gathered related to closing the company. desk division advertising in the desk division is directly related to upon 2. if the desk division is eliminated, we have us,misstastes way no long niger ba needed, thin Since the warehouse space to the amp using the table inventory. We have nur space and we originally had planned to rent additional space at $5,500 per month UEMea wel deck lid off their monthly salary and benefits are $2, 100. One salesperson can be Insurance will be reduced to couced by $1,200 per month dus to fewer machines needto Insurers whengaining costs will be reduced by one employes. chess was forests are $1.700 per month, and we will also were there inches in Costing $1, 100 monthly that will no longer be needed. The company includes in repairs and mainter tentance costs the wages of employees whose sole responsibility is Resonance services. 10 provide mainlanance samba Out lice employes in human resources (HR) who currently provides services to or monin of wands and One office employee "session and earns $2.500 per month of wassea hafits wil be able to move to provide HR services to the table direct been wa syold having to hire a new employee for $1 800 per month for the table One supervisor, whose wages and benefits lots! $6,500 monthly, can be ellman red savings to office expenses if the desk division is eliminated, . We don't exped savings to of Finally, we estimate that sales of chairs will decline by 8% but tables sales wil increase by 1 CPA Canada Task 1 Task 2 + Ready Accessibility investigate If you need further information, let me know