Mohave Corp is considering eliminating a product from its Sand Trap line of beach umbrellas This collection is almed at people who spend time on the beach or have an outdoor patio near the beach Two products, the Indigo and Verde umbrellas, have impressive sales However, sales for the Azul model have been dismal Mohave's Information related to the Sand Trap line is shown below Segmented Tncome statement for Molave's Sand Trap Beach Umbrella Products Indigo Verde Azul Total Sales revenue $60,000 $60,000 $30,000 $150,000 Variable costs 34 000 31 900 26,000 91 00 Contribution margin $26,000 $29, eee $ 4,000 $ 59,000 Less Direct fixed costs 1,900 2,500 2 000 6,400 Segment margin $ 24,100 $26,500 $ 2,000 $ 52,600 Common fixed costs 12 840 17,140 8,920 44 60 Net operating income (loss) $6,260 $ 8,660 $16,920) $ 8,000 Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively Variable costs for these two models would increase proportionately Although the direct fixed costs could be eliminated the common fixed costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1 a Complete the table given below, assuming Mohave Corp drops the Azul line 1 b Will Mohave's net operating Income increase or decrease of the Azul model is eliminated By how much 3 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 b Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating Income of Mohave Required 1a Complete the table given below, assuming Mohave Corp drops the Azul line 1 b Will Mohave's net operating Income Increase or decrease if the Azul model is eliminated By how much 2 Should Mohave drop the Azul model 3 a Complete the table glven below assuming that Mohave had no direct fixed overhead in its production Information and th $51,000 of fixed cost was common fixed cost 3 b Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating Income of Mohave Complete this question by entering your answers in the tabs below Reg 1A Reg 1B Reg 2 Req 3A Reg 3B Req 3C Complete the table given below, assuming Mohave Corp, drops the Azul line (Do not round intermediate calculations Round Common Fixed Costs to the nearest whole dollar) Indigo Verde Total Sales Revenue Variable Costs Contribution Margin Direct Foxed Costs Segment Margin Common Fired Costs Net Operating Income (Loss) Req 18 6920) $ 8,00 Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively Variable costs for these two models would increase proportionately Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1 a Complete the table given below, assuming Mohave Corp drops the Azul line 1b Will Mohave's net operating Income Increase or decrease of the Azul model is eliminated By how much 2 Should Mohave drop the Azul model 3 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 6 Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating Income of Mohave Complete this question by entering your answers in the tabs below Reg 1A Reg 13 Reg 2 Req 3A Reg 30 Req3C Will Mohave's net operating income increase or decrease if the Azul model is eliminated By how much Change in Net Operating Income (Loss) Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to Increase by 10 percem and 15 percent, respectively Vartable costs for these two models would increase proportionately Although the direct fixed costs cou be eliminated, the common fixed costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1 a Complete the table given below, assuming Mohave Corp drops the Azul line 1 b Will Mohave's net operating Income increase or decrease If the Azul model is eliminated By how much 2 Should Mohave drop the Azul moder 3 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51 000 of fixed cost was common fixed cost 3b Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating Income of Mohave Complete this question by entering your answers in the tabs below Req 1A Req 1B Reg 2 RegJA Req 3B Req 3C Should Mohave drop the Azul model Yes 10 No UN LUO Tired costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1a Complete the table given below, assuming Mohave Corp drops the Azul line 1 5 Will Mohave's net operating income increase or decrease of the Azul model is eliminated By how much 2 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 b Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating income of Mohave Complete this question by entering your answers in the tabs below Req 1A Reg 13 Reg 2 Red 3A Reg 38 Reg 3 Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of foced cost was common fixed cost Change in Contribution Margin Contribution Margin Gained on Indigo Contribution Margin Gained on Verde Contribution Margin Lost on Azul Net Increase in Contribution Margin Change in Fored Costs Net Change in Proft Azul is Eliminated ( Req2 Req30 ul Um Woulu cause sales of the Indigo and Verde models to increase by 10 pe and 15 percent, respectively Variable costs for these two models would increase proportionately Although the direct fixed costs be eliminated, the common fixed costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1 a Complete the table given below, assuming Mohave Corp drops the Azul line 1 b Will Mohave's net operating Income Increase or decrease if the Azul model is eliminated By how much 2 Should Mohave drop the Azul model 3 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the en $51,000 of fixed cost was common fixed cost 3 b Should Mohave drop the Azul model 3c What is the increase or decrease in the net operating Income of Mohave Complete this question by entering your answers in the tabs below Req 1A Reg 13 Req 2 Red 3A Req 30 Reg 30 Should Mohave drop the Azul model Yes NO Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 pe and 15 percent, respectively Variable costs for these two models would increase proportionately Although the direct fixed costs be eliminated, the common fixed costs are unavoidable The common fixed costs would be redistributed to the remaining two products Required 1 a Complete the table given below, assuming Mohave Corp drops the Azul line 1 b Will Mohave's net operating Income Increase or decrease If the Azul model is eliminated By how much 2 Should Mohave drop the Azul model 3 a Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the en $51,000 of fixed cost was common fixed cost 3 b Should Mohave drop the Azul model 3 c What is the increase or decrease in the net operating Income of Mohave Complete this question by entering your answers in the tabs below Req 1A Reg 13 Reg 2 Red 3A Reg 33 Req3C What is the increase or decrease in the net operating income of Mohave Change in Net Operating Income (Loss) N

Question

Mohave Corp  is considering eliminating a product from its Sand Trap line of beach umbrellas  This collection is almed at people who spend time on the beach or have an outdoor patio near the beach  Two products, the Indigo and Verde umbrellas, have impressive sales  However, sales for the Azul model have been dismal Mohave's Information related to the Sand Trap line is shown below  Segmented Tncome statement for Molave's Sand Trap Beach Umbrella Products Indigo Verde Azul Total Sales revenue $60,000 $60,000 $30,000 $150,000 Variable costs 34 000 31 900 26,000 91 00 Contribution margin $26,000 $29, eee $ 4,000 $ 59,000 Less  Direct fixed costs 1,900 2,500 2 000 6,400 Segment margin $ 24,100 $26,500 $ 2,000 $ 52,600 Common fixed costs 12 840 17,140 8,920 44 60 Net operating income (loss) $6,260 $ 8,660 $16,920) $ 8,000  Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively  Variable costs for these two models would increase proportionately  Although the direct fixed costs could be eliminated the common fixed costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1 a  Complete the table given below, assuming Mohave Corp drops the Azul line  1 b  Will Mohave's net operating Income increase or decrease of the Azul model is eliminated  By how much  3 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 b  Should Mohave drop the Azul model  3 c  What is the increase or decrease in the net operating Income of Mohave  Required  1a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1 b  Will Mohave's net operating Income Increase or decrease if the Azul model is eliminated  By how much  2  Should Mohave drop the Azul model  3 a  Complete the table glven below assuming that Mohave had no direct fixed overhead in its production Information and th $51,000 of fixed cost was common fixed cost  3 b  Should Mohave drop the Azul model  3 c What is the increase or decrease in the net operating Income of Mohave  Complete this question by entering your answers in the tabs below  Reg 1A Reg 1B Reg 2 Req 3A Reg 3B Req 3C Complete the table given below, assuming Mohave Corp, drops the Azul line  (Do not round intermediate calculations  Round Common Fixed Costs to the nearest whole dollar) Indigo Verde Total Sales Revenue Variable Costs Contribution Margin Direct Foxed Costs Segment Margin Common Fired Costs Net Operating Income (Loss) Req 18  6920) $ 8,00  Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively  Variable costs for these two models would increase proportionately  Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1 a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1b  Will Mohave's net operating Income Increase or decrease of the Azul model is eliminated  By how much  2  Should Mohave drop the Azul model  3 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 6  Should Mohave drop the Azul model  3 c  What is the increase or decrease in the net operating Income of Mohave  Complete this question by entering your answers in the tabs below  Reg 1A Reg 13 Reg 2 Req 3A Reg 30 Req3C Will Mohave's net operating income increase or decrease if the Azul model is eliminated  By how much  Change in Net Operating Income (Loss) Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to Increase by 10 percem and 15 percent, respectively  Vartable costs for these two models would increase proportionately  Although the direct fixed costs cou be eliminated, the common fixed costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1 a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1 b  Will Mohave's net operating Income increase or decrease If the Azul model is eliminated  By how much  2  Should Mohave drop the Azul moder  3 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51 000 of fixed cost was common fixed cost  3b  Should Mohave drop the Azul model  3 c What is the increase or decrease in the net operating Income of Mohave  Complete this question by entering your answers in the tabs below  Req 1A Req 1B Reg 2 RegJA Req 3B Req 3C Should Mohave drop the Azul model  Yes 10 No UN LUO Tired costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1 5  Will Mohave's net operating income increase or decrease of the Azul model is eliminated  By how much  2 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3 b  Should Mohave drop the Azul model  3 c  What is the increase or decrease in the net operating income of Mohave  Complete this question by entering your answers in the tabs below  Req 1A Reg 13 Reg 2 Red 3A Reg 38 Reg 3 Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of foced cost was common fixed cost  Change in Contribution Margin Contribution Margin Gained on Indigo Contribution Margin Gained on Verde Contribution Margin Lost on Azul Net Increase in Contribution Margin Change in Fored Costs Net Change in Proft Azul is Eliminated ( Req2 Req30   ul    Um Woulu cause sales of the Indigo and Verde models to increase by 10 pe and 15 percent, respectively  Variable costs for these two models would increase proportionately  Although the direct fixed costs be eliminated, the common fixed costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1 a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1 b  Will Mohave's net operating Income Increase or decrease if the Azul model is eliminated  By how much  2 Should Mohave drop the Azul model  3 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the en $51,000 of fixed cost was common fixed cost  3 b  Should Mohave drop the Azul model  3c  What is the increase or decrease in the net operating Income of Mohave  Complete this question by entering your answers in the tabs below  Req 1A Reg 13 Req 2 Red 3A Req 30 Reg 30 Should Mohave drop the Azul model  Yes NO Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 pe and 15 percent, respectively  Variable costs for these two models would increase proportionately  Although the direct fixed costs be eliminated, the common fixed costs are unavoidable  The common fixed costs would be redistributed to the remaining two products  Required  1 a  Complete the table given below, assuming Mohave Corp  drops the Azul line  1 b  Will Mohave's net operating Income Increase or decrease If the Azul model is eliminated  By how much  2 Should Mohave drop the Azul model  3 a  Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the en $51,000 of fixed cost was common fixed cost 3 b  Should Mohave drop the Azul model  3 c  What is the increase or decrease in the net operating Income of Mohave  Complete this question by entering your answers in the tabs below  Req 1A Reg 13 Reg 2 Red 3A Reg 33 Req3C What is the increase or decrease in the net operating income of Mohave  Change in Net Operating Income (Loss) N

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Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is almed at people who spend time on

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