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Judy Jean, a recent graduate of Rolling?s accounting program, evaluated the operating performance of Artie Company?s six divisions. Judy made the following presentation to Artie?s
Judy Jean, a recent graduate of Rolling?s accounting program, evaluated the operating performance of Artie Company?s six divisions. Judy made the following presentation to Artie?s board of directors and suggested the Huron Division be eliminated. ?If the Huron Division is eliminated,? she said, ?our total profits would increase by $25,790.?
The Other Five Divisions | Huron Division | Total | |
Sales | $1,663,020 | $100,350 | $1,763,370 |
Cost of goods sold | 978,760 | 76,120 | 1,054,880 |
Gross profit | 684,260 | 24,230 | 708,490 |
Operating expenses | 526,490 | 50,020 | 576,510 |
Net income | $157,770 | $ (25,790) | $131,980 |
Continue | Eliminate | Net Income Increase (Decrease) | |
Sales | $ | $ | $ |
Variable costs | |||
Cost of goods sold | |||
Operating expenses | |||
Total variable | |||
Contribution margin | |||
Fixed costs | |||
Cost of goods sold | |||
Operating expenses | |||
Total fixed | |||
Net income (loss) | $ | $ | $ |
Judy is |
Link to Text |
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