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Please answer all questions. 10 Suire Corporation is considering dropping product DI4E. Data from the company's accounting sys 10) Suire Corporation is considering dropping product
Please answer all questions.
10 Suire Corporation is considering dropping product DI4E. Data from the company's accounting sys 10) Suire Corporation is considering dropping product DI4E. Data below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses S 840,000 s 421,000 s 267,000 s 215,000 All fixed expenses of the company are fully allocated to products Purther investigation has revealed that $204,500 of the fixed manufacturing expenses and $119,500 the fixed selling and administrative expenses are avo in the company's accounting syste idable if product D14E is discontinued. Required: n Acording to the company's accounting system, what is the net operating income eamed by produ (Net losses should be indieated by a minus sign.) b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the pr dropped? TRUE/FALSE. 2 Points each. 11) cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. 12) All other things the same, an increase in unit sales will normally result in an increase in the return on investment. MULTIPLE CHOICE. 4 Points each. 13) At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $11,090 and that the associated rate variance was $350 unfavorable. If 6000 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was: A) $1.91 per MH B) $1.85 per MH C)$1.79 per MH D)$1.97 per MH 14) Which of the following will not result in an increase in return on investment (ROD, assuming other factors remain the same? A) An increase in sales. C) An increase in operating assets. B) A reduction in expenses. D) An increase in net operating income. B-4 Step by Step Solution
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