Outdoor Luggage Corporation produces hard-sided luggage for sports equipment Financial data for three of the corporation's most popular products appear below. Fishing Total Ski Guard Golf Guard Guard $ 925, eee $263,eee $ 407,800 $ 255, eee 482,000 119,000 207,eee 156, eee 443,000 144,000 2ee, eee 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 incone (loss) 69,8ee 8,500 40,800 20, see 43,300 20, 500 7.700 15,100 114,800 40,600 38,100 36,100 185,000 $2,600 81,400 51,000 412,900 122,200 168,000 122,780 $ 30,100 $ 21,800 $ 32,eee $(23,700) "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: Required 2 Required 3 What is the financial advantage (disadvantage) per quarter of discontinuing the fishing guards? 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 NO 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 0 0 Contribution margin (loss) Traceable fixed expenses: 0 0 Total traceable fixed expenses Product line segment margin (loss) $ 0 $ 0 Not operating income (loss) Required 1 Required 2 Required 3 Prepare a properly formatted segmented income statement that would be more useful to management i run profitability of the various product lines. Totals Ski Guards Golf Guards Fishing Guard 0 0 Advertising Common fixed expenses Depreciation of special equipment Salaries of the product line managers Sales Variable manufacturing and selling expenses Product line segment margin (loss) 0 0 $ 0 $ 0 Net operating income (loss)
