Ne more 10 10 bo Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrelas. This collection is aimed 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 ses. However sales for the Azul model have been dismal Mohave's Information related to the Sand Trap line is shown below. Segreted The Statement for chave Sand Trap Beach Umbrella Products - 90 Verde ATUD Total Sales revenue 350.000 0.000 150.000 Variable costs 34,000 20,00 91.00 Contribution margin 676,000 29,00 15.000 Less Directed costs 3.900 2.500 2.400 6,400 Segment margin 24,100,00 $2.32 Confed costs 17,840 B.220 44, et rating Incon los 100X20 SD. *Allocated based on total sales revenge Mohave nos determined that minating the Azul model would caute sales of the Indigo and Verde rodels to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the directed costs could be eliminated, the common led costs are unavoidable. The common fixed costs would be redistributed to the rentining two 31.08 17,8 Required 1. Complete the table given below, assuming Mohave Corp drops the Anne 1. Wil Mohave's not operating income increase or decrease if the Au modelis eliminated by how much? 2. Should Mohave drop the Azul model 3a. Complete the table given below assuming that have had no directed overnen mits production information and the entire $61,000 of five cost was common fed cost 3.b. Should Mohave drop the Aru moder? 3-c. What is the increase or decrease in the net operating income of Moneve 10 points Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req 3A Book Req 3B Reg 3C Print 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) References Indigo Verde Total Sales Revenue Variable Costs Contribution Margin Direct Fixed Conts Segment Margin Common Fixed Costs Net Operating Income (108) NA Reg 18> 10 VYRICUSCI VELLUSCHMIELUI CSU: y 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 $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? 10 points Complete this question by entering your answers in the tabs below. ebook Print References Reg 1A Reg 1B Reg 2 Req Rea 38 Reg 3C 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. 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 Fixed Costs Net Change in Profit if Azul is Eliminated Pruulia 10 90 points 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 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? book Pin References Complete this question by entering your answers in the tabs below. Reg 3C Req IA Reg 13 Reg 2 Reg 3A Reg 38 What is the increase or decrease in the net operating Income of Mohave? Change in Net Operating Income (0) C Reg 30
