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Help Save & Exit D Required information Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product
Help Save & Exit D Required information Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product Jare os follows: Sales (10,000 units at $200 each) Less Costs: Variable Production Costs Sales Commissions -15% of Sales Salaries of Line Supervisors Traceable Fixed Factory Overhead (Allocated to product on the Basis of Square Meters Occupied) Total Cost Operating Income (LOS) 32,000/000 $960.000 $300,000 $100,000 $180,000 $170.000 $1.910.000 $90.000 Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product J. The company's total fixed factory overhead cost would not be affected by this decision Assume that discontinuing the manufacture and sale of Product will not affect the sale of other products. If the company discontinues Product I, what will be the change in annual operating income due to this decision? Multiple Choice $260.000 decrease $315.000 decrease. Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced, Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product I. The company's total fixed factory overhead cost would not be affected by this decision. Assume that discontinuing the manufacture and sale of Product will not affect the sale of other products. If the company discontinues Products, what will be the change in annual operating income due to this decision? Multiple Choice $260.000 decrease 5315,000 decrease $145.000 increase $170.000 decrease
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