Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Black Productions has three models. D, E, and F. The following information is available: Model D Model E Model F Sales revenue $65,000 $33,000 $24,000

image text in transcribed
image text in transcribed
Black Productions has three models. D, E, and F. The following information is available: Model D Model E Model F Sales revenue $65,000 $33,000 $24,000 Variable expenses $32.000 $13,000 $14.000 Contribution margin $33,000 $20,000 $10.000 Fixed expenses $16,000 $16,000 $16,000 Operating income (loss) $17,000 $4,000 $(6.000) Black Productions is thinking of discontinuing model F because it is reporting an operating loss. All fixed costs are unavoidable Black Productions discontinues model F and rents the space formerly used to produce product F for $15,000 per year, what effect will this have on operating income? OA Increase $5,000 B. Increase $21,000 OC. Decrease $5,000 D. Decrease $21,000 When using the high-low method, what is the correct order of the following three steps? I write the cost equation ii. find the vertical intercept il find the slope O A. , , OB. , , OC. , , OD

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

Auditor Jokes The Ultimate Collection Of Auditor Jokes

Authors: Chester Croker

1st Edition

1080090169, 978-1080090167

More Books

Students also viewed these Accounting questions