ezto.mheducation.com Question 2 - HW Chapter 11 - Connect Yahoo Search Results AccessUH McGraw Hill - Prechapter assignments.. Saved Chapter 11 i 2 Outdoor Luggage Corporation produces hard-sided luggage for sports equipment. Financial data for three of the corporation's most popular products appear below. Golf Fishing Total Ski Guard Guard Guard Sales $928, 000 $263, 000 $ 406, 000 $ 259, 000 Variable manufacturing and selling expenses 480,000 118, 000 207, 000 155, 000 Contribution margin 448 ,000 145, 000 199, 000 104, 000 Book Fixed expenses: Advertising, traceable 70, 000 8, 700 40, 400 20,900 Depreciation of special equipment 44, 000 20, 600 8, 000 15, 400 Salaries of product-line managers 113, 700 40, 200 8, 400 35, 100 Hint Allocated common fixed expenses* 185 , 600 52 , 600 81,200 51, 800 Total fixed expenses 413, 300 122, 100 168, 000 123, 200 Net operating income (loss) $ 34, 700 $ 22,900 $ 31,000 $ (19, 200) Print *Allocated on the basis of sales dollars. rences Management is concerned about the continued losses shown by the fishing guards and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce fishing guards has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guard model? 2. Should the production and sale of fishing guards be discontinued? 3. Prepare a properly formatted segmented Income statement that would be more useful to management In assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guards? Required 1 Required 2 >