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Bingham Company manufactures and tels Product J. Results for last year for the manufacture and sale of Product Jure ** follows Sales (10,000 units at
Bingham Company manufactures and tels Product J. Results for last year for the manufacture and sale of Product Jure ** follows Sales (10,000 units at $200 each Les Costs Variable Production Costs Sales Commissions -15% of Sales Salaries of Line Supervisors Traceable Fixed Factory Overhead (A located to product on the Basis of Square Meters Occupied Total Cost Operating Income (Loss) $2.000.000 SM0000 $300,000 $300.000 $180.000 $170.000 $1910.000 $20.000 Bingham Company anticipates no change in the operating result for Product in the foreseeable future at the product la produced, Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product The company's total fed factory overhead cost would not be affected by this decision Assume that discontinuing Product would result in a $100.000 increase in the contribution margin of other product lines. How many units of Product would have to be sold next year for the company to be as well off as if just dropped Product and enjoyed the increase contribution margin from other product:7 Round your fint answers to nearest whole number) Mutiple Choice 15 500 units 16.525 units Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced, Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product. The company's total fixed factory overhead cost would not be affected by this decision Assume that discontinuing Product I would result in a $100,000 increase in the contribution margin of other product lines. How many units of Product would have to be sold next year for the company to be as well off as if it just dropped Product and enjoyed the increase in contribution margin from other products? (Round your final answers to nearest whole number). Multiple Choice 15.500 units 16,125 units 2.500 units 9 7.838 units
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