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i want to check my answers so please if you can answer all of them The forecast income statement for Morrison, Inc. for next year
i want to check my answers so please if you can answer all of them
The forecast income statement for Morrison, Inc. for next year is as follows: Product: Total Sales Revenue 5300,000 $210,000 $510.000 Total costs $230.000 $230,000 $460.000 Income (loss) 5.70,000 $120.000 550.000 Management is considering ending the production and sale of Product G the beginning of ed year. Ending Product Gwill have no effect on total fixed costs or on the sales of Product F. Morrison's fixed costs are about 14% of its total costs. What is the estimated amount of change net income for next year that will result from ending production and sale of Product G? a. $177,800 increase b. $177,800 decrease c. $20,000 increase d. none of the above 200 2000 6. Clemente Inc. incurs the following product costs to produce 10,000 units of a subcomponent Direct materials $8.400 11.250 - 3225 -32 Factory overhead 12,600 An outside supplier has offered to sell Clemente the subcomponent for $2.85 a unit. Fixed costs are 10% of total product cost and will not change as a result of accepting the offer. If Clemente accepts the offer, how much will net income increase or decrease)? a. $29,025 $525 c. ($3,750) d. none of the above - F 2.85 0.000 2500+32535 32250-31725-5251 11:58 11.920 7. Product BH63 has sales revenue of $620,000, cost of goods sold $740,000 including 22% fixed cost, and selling expenses of $40,000 including 22% variable costs. The product creates an operating loss of $160,000. All fixed costs will still be paid by the company if BH63 is discontinued. How much will operating net income increase or decrease if product BH63 is discontinued? CO GOOD a. $34.000 decrease 12.10B 7 22 On - 6. $417,200 decrease c. $160,000 increase d. none of the above - 162800 TK31 209 94000 2110 Gocco 34000 0 EXD490 (160.000 8. Pomeranian Trucking Co. is considering disposing of a truck (asset). Pomeranian can sell the truck through a broker for $56.000 less 7% commission. Alternatively, Shepherd Co. has offered to lease the truck for six years for a total of $69,000. If the truck is leased to Shepherd, Pomeranian will incur repair, insurance, and licensing expenses estimated at $18,000 for the six-year lease period. At lease-end, the truck is expected to have no residual value. What will be the effect on net income for 6 years if Pomeranian leases the truck to Shepherd instead of selling (disposing of the truck? a $1,080 increase S S 000-1 Szo b. $ 1.000 decrease c. $5,000 decrease d none of the above Luon $69.000 1080 decrease Step by Step Solution
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