Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need answers it's very urgent 5 minutes VS Translate m Cape Breton Univer... Nova Scotia Opport... Red Harsh Patel Sebastian Manufacturing Limited manufactures a number

image text in transcribed

image text in transcribed

need answers it's very urgent 5 minutes

VS Translate m Cape Breton Univer... Nova Scotia Opport... Red Harsh Patel Sebastian Manufacturing Limited manufactures a number of products including a product called Triton. Triton has been losing money for the last few years and the manager of Sebastian Manufacturing is thinking of discontinuing its production. of stion The results for the last quarter for Product Triton are as follows: Sales $425,000 Variable costs Variable manufacturing costs $105,000 Sales Commissions 42,500 Shipping 56,000 Total variable costs 203,500 Contribution margin 221,500 Fixed costs 55,500 Salary of production line manager General factory overhead 89,000 26_092630.pdf Show all 12,000 Depreciation on equipment Direct advertising General administrative expenses 60,000 28,000 Insurance on inventories 6,500 Total fixed costs 251,000 Net loss $(29,500) The equipment has no resale value and no other use. Discontinuing production of Product Triton will not affect the sales of other products and would have no affect on factory overhead or general administrative expenses. Required: Would you recommend they discontinue production of Product Triton? Why or why not

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

Auditing and Assurance Services Understanding the Integrated Audit

Authors: Karen L. Hooks

1st edition

471726346, 978-0471726340

More Books

Students also viewed these Accounting questions