Question
I wanna help plz Q1. Jordan Company has two products. Financial information for the three products is presented below: Table Chair Sales 980,000 750,000 Variable
I wanna help plz Q1. Jordan Company has two products. Financial information for the three products is presented below: Table Chair Sales 980,000 750,000 Variable cost 343,000 225,000 Fixed cost (traceable) 450,000 325,000 Fixed cost (common) 275,000 175,000 Net income/loss (88,000) 25,000 Top management feels that the table product should be eliminated. How Jordan Company 's income change if the product is discontinued.
Q2. The following data taken from the records of DELTA Company, relates to the production and sales of 15000 units during 2009 Sales 450,000 DM 105,000 DL 60,000 V. MOH 30,000 Sales commission 60,000 F. MOH 75,000 F. Selling and Ad. 45,000 DELTA Co. is considered a special order for 4,500 units at special price 12 each. Assume DELTA Co. has enagh capacity to fulfill the special order Required: a. Should DELTA Co. accept or reject the special offer b. How DELTA Co.'s income change if the offer is accepted.
Q3.On January 1,2018 ABC Company considered replacing equipment which purchased On January 1 2016, with a cost of $40,000, four years useful life, and annual operation cost of $19,000. The new equipment has a cost of $42,000 and a useful life of 2 years. The seller has offered a trade-in allowance of $7,500. The new equipment is much more efficient. ABC Co. projects cost savings of $10,000 per year if the new equipment is purchased. Prepare incremental analysis for this decision.
Q4. Arab Company has three segments, one of which is unprofitable. The (A) segment had the following results last period: Sales 1,040,000 VC 640,000 CM 400,000 FC 540,000 Net loss (140,000) If (A) segment is eliminated, 70% of the fixed expenses can also be eliminated; the other 30% will be reallocated. What will happen to company net income if this product line is eliminated?
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