Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

mistake on the first picture below #5. The most recent monthly income statement for the Fiem.Inc. is Total Store Store Sales $2,100,000 $1,300,000 $800,000 Variable

image text in transcribed
mistake on the first picture image text in transcribed
below #5. The most recent monthly income statement for the Fiem.Inc. is Total Store Store Sales $2,100,000 $1,300,000 $800,000 Variable expenses 1.250.000_882.000 378.000 840,000 418.000 422,000 margin Traceable fixed expenses 420.000_231.000 189.000 Segment margin 420,000 187,000 233,000 350.000 210.000 100.0 Common fixed expenses $70,000_1823.000) 993.000 income Firm, Inc. is considering closing Store I. If Store I is closed, one-fourth of its traceable foed expenses would continue. Also, the closing of Store I would result in a 25% decrease in sales in Store Il Firm Inc. allocates common fixed expenses on the basis of sales dollars and none of these costs would be saved a store were shut down. If Store A is closed, the net operating income of Firm, Inc. would: a) $350,250 decrease b) $275,750 decrease c) $341,350 decrease d) $502,750 decrease e) $173,250 increase . The most recent monthly income statement for them Total Store Store Sales 52,100,000 $1,300,000 $800,000 Variable expenses 1.260.000_182.000 375.000 Contribution margin 840,000 418,000 422.000 Traceable fixed expenses 420.000_231.000 189.000 420,000 187,000 233,000 Segment margin 140.000 Common fixed expenses 350,000_210.000 93.000 $70,000 $23.000 Net operating income Firm, Inc. is considering closing Store I. If Store L is closed, one-fourth of its traceable fored expenses would continue. Also, the closing of Store I would result in a 25% decrease in sales in Store. Firm, Inc allocates common fixed expenses on the basis of sales dollars and none of these costs would be saved it a store were shut down. if Store is closed, the net operating income of Firm, Inc. would: a) $350,250 decrease b) $275,750 decrease c) $341,350 decrease d) $502,750 decrease e) $173,250 increase

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Libby, Short

6th Edition

978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881

More Books

Students also viewed these Accounting questions

Question

DX 1 1 v 1 . 5 1 . 8 A

Answered: 1 week ago