Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

given WoolCorp Condensed Income Statement For the Year Ended December 31, 2048 1 Raw Wool Wool Yarn Rug Yarn Total Company 2 Sales $200,000.00 $155,000.00

given

image text in transcribedimage text in transcribed

WoolCorp Condensed Income Statement For the Year Ended December 31, 2048 1 Raw Wool Wool Yarn Rug Yarn Total Company 2 Sales $200,000.00 $155,000.00 $197,000.00 $552,000.00 3 Cost of goods sold: 4 Variable costs $48,000.00 $18,600.00 $37,200.00 $103,800.00 5 Fixed costs 32,000.00 12,400.00 24,780.00 69,180.00 6 Total cost of goods sold $80,000.00 $31,000.00 $61,980.00 $172,980.00 7 Gross profit $120,000.00 $124,000.00 $135,020.00 $379,020.00 8 Operating expenses: 9 Variable expenses $5,000.00 $7,750.00 $53,080.00 $65,830.00 10 Fixed expenses 89,000.00 77,000.00 106,200.00 272,200.00 11 Total operating expenses $94,000.00 $84,750.00 $159,280.00 $338,030.00 12 Income (Loss) from operations $26,000.00 $39,250.00 $(24,260.00) $40,990.00 Complete the following table using the data in the preceding income statement to compare the effects of dropping the rug yarn line of products. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If an amount is zero, enter O. Differential Analysis Score: 20/46 Continue Rug Yarn (Alternative 1) or Discontinue Rug Yarn (Alternative 2) December 31, 20Y8 Continue Rug Yarn (Alternative 1) 1 Discontinue Rug Yarn (Alternative 2) Differential Effect on Income (Alternative 2) 2 Revenues $197,000.00 $0.00 $(197,000.00) 3 Costs: 4 Variable $90,280.00 $0.00 $(90,280.00) 5 Fixed 130,980.00 0.00 6 Income (loss) $24,260.00

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

Produktivitat Von Dienstleistungen

Authors: Klaus Moller, Wolfgang Schultze

3rd Edition

3658040858, 9783658040857

More Books

Students also viewed these Accounting questions

Question

What are our strategic aims?pg 87

Answered: 1 week ago