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Please answer all, not just one. Thank you! 1. The condensed income statement for a business for the past year is presented as follows: Sales
Please answer all, not just one. Thank you! 1. The condensed income statement for a business for the past year is presented as follows: Sales Less variable costs Contribution margin Less fixed costs Income (loss) from oper. $300,000 180.000 $120,000 50.000 $70,000 Product G $220.000 190.000 $ 30,000 50.000 S. (20,000) $340,000 220.000 $120,000 40.000 $ 80,000 Total $860,000 590.000 $270,000 140.000 $130,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change in net income for the current year that will result from the discontinuance of Product G? a $20,000 increase b. $30,000 increase c. $20,000 decrease d $30,000 decrease 4. Jones Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $60 per pound and would require an additional cost of $24 per pound to produce. What is the differential cost of producing Product C? a $30 per pound b. $24 per pound c. $28 per pound d. $60 per pound 5. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price Unit manufacturing costs: Variable Fixed What is the differential revenue from the acceptance of the offer? a $300,000 b. $420,000 c. $120,000 d. $240,000 A business received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price Unit manufacturing costs: Variable Fixed 6. What is the differential revenue from the acceptance of the offer? a $200,000 b. $160,000 c. $130,000 d. $140,000 7. What is the differential cost from the acceptance of the offer? a $200,000 b. $160,000 c. $140,000 d. $130,000 8. What is the amount of gain or loss from acceptance of the offer? a. $30,000 gain b. $40,000 loss c. $30,000 loss d. $20,000 loss
Please answer all, not just one. Thank you!
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