Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Data Table A (similar to) board of directors of Control One have received the following operating Income in to view the operating income data) board

image text in transcribed
image text in transcribed
image text in transcribed
Data Table A (similar to) board of directors of Control One have received the following operating Income in to view the operating income data) board are surprised that the industrial systems product line in not profitable. Th ustrial systems will decrease fixed cost of goods sold by $83,000 and decreas ements te Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total 5 340,000 $ 360.000 $ 700,000 Totals with Industrial Systems Totals Without Industrial Systems Change Systems Net Sales Revenue Cost of Goods Sold Variable ng Administrative 33.000 240,000 42.000 65,000 75,000 305,000 273.000 107.000 380,000 Costs argin Fored Total Cont of Goods Sold Gross Profit Soling and Administrative Expenses Variable 87.000 253,000 320.000 ing Administrative 06.000 40.000 78.000 22,000 Fixed 142.000 62.000 204.000 106.000 98000 Total Selling and Administrative Expensen Operating Income (los) $ (39,000) 155.000 $ 110,000 mecom) bor in the edit fields and then click Check Answer Print Done CHAN LOCK Awer Members of the board of directors of Control One have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the companys that dropping industrial systems wil decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses by $10,000. Read the requirements Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs: Requirements Manufacturing Selling and Administra 1. Prepare a differential analysis to show whether Control One should drop the industrial systems Total Variable Costs product line Contribution Margin 2. Prepare contribution margin income statements to show Control One's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare Fixed Costs: the difference between the two alternatives income numbers to your answer to Requirement 1. Manufacturing 3. What have you learned from the comparison in Requirement ? Selling and Administra Total Fixed Costs Print Done Operating Income (Loss) Enter any number in the edit fields and then click Check Answer. 1 part remaining

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

The ISO 14000 EMS Audit Handbook

Authors: Greg Johnson

1st Edition

1574440691, 978-1574440690

Students also viewed these Accounting questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago