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Need help solving A and B. Could you please help solve on excel. et a special order er operating data for the three products made
Need help solving A and B. Could you please help solve on excel. et a special order er operating data for the three products made and sold by Ranger Company: Product Total 200.000 S 1,100,000 20,000 60,000 140,000 Sales S 600,000 300,000 Manuficturing costs: Fived Variable 60,000 S 280,000 220,000 S 100,000 S 20,000 20,000 12,000 S 400,000 280,000 202.000 600,000 $2,000 882,000 Selling and administrative costs: Fived Variable Total costs 30,000 S S 40.000280,000 20,000 S 20,000 S Net income (loss) S 200,000 $ 2.000 218,000 In view of the net loss for Product C, Ranger's management is considering dropping that product direct costs and would be eliminated if Product C were dropped. Fixed costs eliminated. Assume that the space used to produce Product C woukd be left idle. . All variable costs are are indirect costs; no fixed costs would be Required: a. Would you recommend the elimination of Product C? Give supporting computations. Hint: Uillze the table below to help you reach a conclusion/ Remember to answer if you would keep or drop Product C Ranger Company Relevant Revenues and Costs of Alte matives Keep Product C Eliminate Product C Diffe rential Revenues Expenses (all variable) Net advantage (disadvantage) of h By how much woukd the company's overall net income increase or decrease if Product C was eliminated? (Answer to part B bolded below). between the sales and variable costs of product C represents a contribution to the fixed costs of the company, Product C is dropped, becomes allocated to the remaining products Product C should not be Answer:IfProduct C is dropped, net income will be reduced from S218,000 to $148,000. The difference of $70,000 hich if eliminated unless a more profitable alternative is available
Need help solving A and B.
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