Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! please answer all parts to the question clearly please its sometimes hard to understand the experts please thank you! provide the answer TO EACH

Hello! please answer all parts to the question clearly please its sometimes hard to understand the experts please thank you!

provide the answer TO EACH QUESTION CLEARLY please!!!

PLEASE CLEARLY LABLE THE ANSWER & SHOW ALL WORK.

image text in transcribed
3A Going Under Pvt. Ltd. provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating climinating the GL area because it is showing a pre-tax loss. An annual Income statement follows (in $000): 10 SALES 11 12 14 VARIABLE MANUFACTURING COSTS 13 VARIABLE NON-MANUFACTURING COSTS * DEPARTMENT FIXED COSTS (AVOIDABLE) ALLOCATED FIXED COSTS (UNAVOIDABLE) OPERATING PROFITS PAYROLL GL TAX $5,500 $3,900 $4,390 ($1,678) ($1,245) ($1.597) ($599) ($1,400) ($486) ($1,399) ($1,300) ($1,570) ($378) ($500) ($299) $1,446 ($545) $438 16 17 20 21 32 If corporate management drops the GL area, what impact would this have on total operating profit? (Give actual dollar impact on profit; "yeso" answers are not acceptable) 6 7

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_2

Step: 3

blur-text-image_step3

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

Students also viewed these Accounting questions