managerial accounting

Q1: should Allied west drop Wisk customer? Altz-Drop wisk Differential analysis Alt: With wisk 1.200,000 Revenue 500.000-300.000 - 100.000) 800.000 -TVC COGS 920,000 92.000 30,000 370,000-220,000 - 330.000 relevant 590,000 41,000+18,000 - 33.000 relevant 59.000 11,000,000 = 10.000 relevant 20.000 13.000 7.000 12.000 relevant 20.000 689,000 385.000 111,000 (15.000) Furniture handling labor Marketing support Sales order and delivery processing TV.C CM -TEC Furniture-handling equipment cost written off as depreciation Rent 32.000 1,074,000 126,000 25.000 25.000 36,000 36,000 0 relevant 0 imelevant 0 irrelevant 0 irrelevant General administration 48.000 48.000 Allocated corporate-office costs 24,000 24,000 TEC 0.1 133.000 17,000) 133.000 (22.000) 15.000) I would advise allied west company to sell wisk because if it dropped wisk it's operating loss would increase by 15,000 Q2: should Allied West Add loral customer which had a customer profile much like Wisk's, assuming Allied west will have to acquire furniture handling equipment for loral costing $9,000? Q3: should allied Furniture's managers close allied west for the year? (recall that there is no disposal value for the equipment that allied west had already acquired. Closing Allied west will have no effect on total corporate office cost and there is no alternative use for the allied west space.) Q4: should allied furniture's managers open another sales office (Allied south)? (Recall the new sales office revenues and costs are identical to Allied west's costs. Opening this sales office will have no effect on corporate office cost. Q1: should Allied west drop Wisk customer? Altz-Drop wisk Differential analysis Alt: With wisk 1.200,000 Revenue 500.000-300.000 - 100.000) 800.000 -TVC COGS 920,000 92.000 30,000 370,000-220,000 - 330.000 relevant 590,000 41,000+18,000 - 33.000 relevant 59.000 11,000,000 = 10.000 relevant 20.000 13.000 7.000 12.000 relevant 20.000 689,000 385.000 111,000 (15.000) Furniture handling labor Marketing support Sales order and delivery processing TV.C CM -TEC Furniture-handling equipment cost written off as depreciation Rent 32.000 1,074,000 126,000 25.000 25.000 36,000 36,000 0 relevant 0 imelevant 0 irrelevant 0 irrelevant General administration 48.000 48.000 Allocated corporate-office costs 24,000 24,000 TEC 0.1 133.000 17,000) 133.000 (22.000) 15.000) I would advise allied west company to sell wisk because if it dropped wisk it's operating loss would increase by 15,000 Q2: should Allied West Add loral customer which had a customer profile much like Wisk's, assuming Allied west will have to acquire furniture handling equipment for loral costing $9,000? Q3: should allied Furniture's managers close allied west for the year? (recall that there is no disposal value for the equipment that allied west had already acquired. Closing Allied west will have no effect on total corporate office cost and there is no alternative use for the allied west space.) Q4: should allied furniture's managers open another sales office (Allied south)? (Recall the new sales office revenues and costs are identical to Allied west's costs. Opening this sales office will have no effect on corporate office cost. Q1: should Allied west drop Wisk customer? Altz-Drop wisk Differential analysis Alt: With wisk 1.200,000 Revenue 500.000-300.000 - 100.000) 800.000 -TVC COGS 920,000 92.000 30,000 370,000-220,000 - 330.000 relevant 590,000 41,000+18,000 - 33.000 relevant 59.000 11,000,000 = 10.000 relevant 20.000 13.000 7.000 12.000 relevant 20.000 689,000 385.000 111,000 (15.000) Furniture handling labor Marketing support Sales order and delivery processing TV.C CM -TEC Furniture-handling equipment cost written off as depreciation Rent 32.000 1,074,000 126,000 25.000 25.000 36,000 36,000 0 relevant 0 imelevant 0 irrelevant 0 irrelevant General administration 48.000 48.000 Allocated corporate-office costs 24,000 24,000 TEC 0.1 133.000 17,000) 133.000 (22.000) 15.000) I would advise allied west company to sell wisk because if it dropped wisk it's operating loss would increase by 15,000 Q2: should Allied West Add loral customer which had a customer profile much like Wisk's, assuming Allied west will have to acquire furniture handling equipment for loral costing $9,000? Q3: should allied Furniture's managers close allied west for the year? (recall that there is no disposal value for the equipment that allied west had already acquired. Closing Allied west will have no effect on total corporate office cost and there is no alternative use for the allied west space.) Q4: should allied furniture's managers open another sales office (Allied south)? (Recall the new sales office revenues and costs are identical to Allied west's costs. Opening this sales office will have no effect on corporate office cost. Q1: should Allied west drop Wisk customer? Altz-Drop wisk Differential analysis Alt: With wisk 1.200,000 Revenue 500.000-300.000 - 100.000) 800.000 -TVC COGS 920,000 92.000 30,000 370,000-220,000 - 330.000 relevant 590,000 41,000+18,000 - 33.000 relevant 59.000 11,000,000 = 10.000 relevant 20.000 13.000 7.000 12.000 relevant 20.000 689,000 385.000 111,000 (15.000) Furniture handling labor Marketing support Sales order and delivery processing TV.C CM -TEC Furniture-handling equipment cost written off as depreciation Rent 32.000 1,074,000 126,000 25.000 25.000 36,000 36,000 0 relevant 0 imelevant 0 irrelevant 0 irrelevant General administration 48.000 48.000 Allocated corporate-office costs 24,000 24,000 TEC 0.1 133.000 17,000) 133.000 (22.000) 15.000) I would advise allied west company to sell wisk because if it dropped wisk it's operating loss would increase by 15,000 Q2: should Allied West Add loral customer which had a customer profile much like Wisk's, assuming Allied west will have to acquire furniture handling equipment for loral costing $9,000? Q3: should allied Furniture's managers close allied west for the year? (recall that there is no disposal value for the equipment that allied west had already acquired. Closing Allied west will have no effect on total corporate office cost and there is no alternative use for the allied west space.) Q4: should allied furniture's managers open another sales office (Allied south)? (Recall the new sales office revenues and costs are identical to Allied west's costs. Opening this sales office will have no effect on corporate office cost