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(Click the icon to Thompson Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due

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(Click the icon to Thompson Company manufactures two products. Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in production processes, Product Ahas higher variable costs and Product B has higher fixed costs Management is considering dropping Product B because that product line has an operating loss 9. 10. If fixed costs If 50% of Prod Why or why no (Click the icon to view the income statement.) 9. If fixed costs cannot be avoided, should Thompson drop Product B? Why or why not? 10. If 50% of Product B's fixed costs are avoidable, should Thompson drop Product B? Why or why not? Thompson Company Income Statement Month Ended June 30, 2018 Total Product A Product B et Sales Revenue $ 160,000 $ 80,000 80,000 $ 66,800 132,000 65,200 ariable Costs contribution Margin 13,200 14,800 28,000 35,000 3,500 31,500 Fixed Costs $ (7,000) $ 9,700 $ (16,700) Dperating Income/(Loss) . If fixed costs cannot be avoided should Thompson drop Product B? Why or why not? (Use a minus sign or parenti Expected decrease in revenue Expected decrease in total variable costs Expected increasel(decrease) in operating income Thompson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable, should Thompson drop Product B? Why or why not? (Use a minus Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected increasel decrease) in operating income ang McCollum drop Product B because operating income will (Click the icon to view the in Thompson Company manufactures two products Both products have the same sales price, and the volume of sales is equivalent. However, due to the difference in production processes, Product Ahas higher variable costs and Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss Display 09 9. If fixed costs cannot be av 10. If 50% of Product B's foxed Why or why not? AKT d) Sound 9. If fixed costs cannot be avoided, should Thompson drop Product B? Why or why not? (Use a minus sign or parentheses to enter a de Notification: Expected decrease in revenue Focus assist Expected decrease in total variable costs Expected increase (decrease) in operating income Power & sles Thompson drop Produd B because operating income will 10.11 50% As are avoidable, should Thompson drop Product B? Why or why not? (Use a minus sign or parentheses Battery Expected should Expected ble costs Storage Expected should not OB Tablet Expected decrease in total costs Expected increased decrease in operating income Multitasking McCollum drop Product Because operating income will is Projecting X Shated expe Chipboard Erdowy umor in the edit folds and then contine to the next question The Type here to search Thompson Company manufactures two products Bolhas the volume of sales is equivalent. However, due to the difference in production processes Product Ahas higher variable costs and Product B has higher fixed costs Management is considering dropping Product B because that product line has an operating loss 9. If fixed costs cannot be avoided, should Thompson drop Product 10. 50% of Product B's fixed costs are avoidable, should Thompson Why or why not? TEIE 9. f fixed costs cannot be avoided, should Thompson drop Product B? Why or why not? (Use a minus sign or parentheses to enter a decrease in profits) scation as assist Expected decrease in revenue Expected decrease in total variable costs Expected increase decrease in operating income Use a minus sign or parentheses to enter a decrease in profits decrease by $14,800 er & slel Thompson drop Product B because operating income will 10. of Products and costs are avoidable, should Thompson ktery Expected decrease in revenue Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected increase decrease in operating income Multitasking.com dop Product is because operate income wit Projecting decrease by $16,700 Increase by $14.000 increase by $16.700 Shared expe Clipboard number in the edit fields and then continue to the next question Time Remaining: 01 30 35 Type here to search o 2 8 EP . len ... 44 Sound 9. If fixed costs cannot be avoided, should Thompson drop Product B? Why or why not? (Use a minus sign or parentheses to Notification Expected decrease in revenue ) Focus assist Expected decrease in total variable costs Expected increase (decrease) in operating income Power & slet Thompson drop Product B because operating income will 10. If 50% of Product B's fixed costs are avoidable should Thompson drop Product B? Why or why not? (Use a minus sign or p Battery Expected decrease in revenue Storage Expected decrease in total variable costs Expected decrease in fixed costs Tablet Expected decrease in total costs Expected increasel decrease) in operating Income Bi Multitasking McColum drop Product B because operating income will Projecting i should not * Shared expe shoud Clipboard Enter andere tolds and then continue to the next question Type here to search RE ED Fiable costs sts sts in operating income roduct B because operating income will increase by $950 increase by $16,700. fields and then continue to the next qu decrease by $950 decrease by $16,700

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