Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm really stuck on this question and I've asked it a couple times. For the following Chart can I get a picture of it filled

I'm really stuck on this question and I've asked it a couple times. For the following Chart can I get a picture of it filled out it would really help me out, all the answers ive gotten have been confusing and not put in the provided chart and I think visual aid would really help me.

image text in transcribed
Nicole Filippes, a recent graduate of Rollings University's accounting program, evaluated the operating performance of Poway Company's six divisions. Nicole made the following presentation to Poway's board of directors and suggested the Erie division be eliminated. "If the Erie division is eliminated," she said, "our total profits would increase by $24,300." The Other Five Divisions Erie Division Total Sales $1,663.500 $100,100 $1,763,600 Cost of goods sold 977.400 76,300 1,053.700 Gross profit 686,100 23,800 709.900 Operating expenses 529.000 48,100 577.100 Net income $157,100 $(24.300 $132,800 In the Erie division, the cost of goods sold is $60,900 variable and $15,400 fixed, and operating expenses are $14,500 variable and $33,600 fixed. None of the Erie division's fixed costs will be eliminated if the division is discontinued. Is Nicole right about eliminating the Erie Division? Prepare a schedule to support your answer. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e-g. (15,000).) Net Income Increase Continue Eliminate (Decrease) Sales Net Income (loss) Variable costs Contribution margin Fixed costs

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

Fundamentals Of Strategy

Authors: Gerry Johnson, Kevan Scholes, Richard Whittington

2nd Edition

0273713108, 9780273713104

More Books

Students also viewed these Accounting questions

Question

In the network in figure, V1 = 5 V1 0.25 0 6/0 A -jo.25 n

Answered: 1 week ago

Question

Outline five major criticisms of humanistic psychologies.

Answered: 1 week ago