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Outdoor Luggage Corporation produces hard-sided luggage for sports equipment. Financial data for three of the corporation's most popular products appear below. Gol Fishing Ski Guard

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Outdoor Luggage Corporation produces hard-sided luggage for sports equipment. Financial data for three of the corporation's most popular products appear below. Gol Fishing Ski Guard Total Guard Guard $ 921,000 $265,000 $ 403,000 $ 253,000 472,000 117,000 201,000 154,000 449,000 148,000 202,000 99,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (10) 69,200 8,200 40,200 20,800 43,800 20,800 7,700 15,300 115,500 40,400 38,300 36,800 184,200 53,000 80,600 50,600 412,200 122,400 166,800 123,500 $36,300 $ 25,600 $ 35,200 $(24,500) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the fishing guards and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce fishing guards has no resale value and does not wear out. Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guard model? 2. Should the production and sale of fishing guards be discontinued? 3. Prepare a properly formatted segmented Income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guards? Outdoor Luggage Corporation produces hard-sided luggage for sports equipment Financial data for three of the corporation's most popular products appear below. Golf Fishing Total Ski Guard Guard Guard $ 921,000 $265,000 $403,000 $ 253,000 472,000 117,000 201,000 154,000 449,000 148,000 202.000 99,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses Advertising, traceable Depreciation of special equipment Salaries of product-line managers allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,200 8,200 40,200 20,800 43,800 20,800 7,700 15,300 115,500 40,400 38,300 36,800 184,200 53,000 80,600 50,600 412,700 122,400 166,800 123,500 $ 36,300 $ 25,600 $ 35,200 $(24,500) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the fishing guards and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce fishing guards has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guard model? 2. Should the production and sale of fishing guards be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Should the production and sale of fishing guards be discontinued? Yes O No "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the fishing guards and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce fishing guards has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guard model? 2. Should the production and sale of fishing guards be discontinued? 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long- run profitability of the various product lines. Totals Ski Guards Golf Guards Fishing Guards Contribution margin (loss) Traceable fixed expenses: + Total traceable fixed expenses Product line segment margin (loss) Net operating income (loss)

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