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Please answer all requirements. ACC319 Cost Accounting 2020 Fall Joseph Daly : 12/03/20 1:58 PM Homework: Chapter 11 Homework Save Score: 0 of 12 pts
Please answer all requirements.
ACC319 Cost Accounting 2020 Fall Joseph Daly : 12/03/20 1:58 PM Homework: Chapter 11 Homework Save Score: 0 of 12 pts 5 of 6 (0 complete) HW Score: 0%, 0 of 100 pts P11-46 (similar to) 8 Question Help First Rate Corporation has four operating divisions. The budgeted revenues and expenses for each division for 2017 follows: (Click to view the results of each division.) Closing down any division would result in savings of 70% of the fixed costs of that division. Top management is very concerned about the unprofitable divisions (A and B) and is considering closing them for the year. Read the requirements Requirement 1. Calculate the increase or decrease in operating income if First Rate closes division A. Begin by calculating Division A's contribution margin. Division A Sales x Data Table Requirements Contribution margin Division B c D $ 510,000 $ 1. Calculate the increase or decrease in operating income if First Rate closes division A. 2. Calculate the increase or decrease in operating income if First Rate closes division B 3. What other factors should the top management of First Rate consider before making a decision? Sales Cost of goods sold Selling, general, and administrative expenses Operating income/loss 500,000 125,000 420,000 $ 340,000 90.000 960,000 $ 600,000 245,000 700,000 440,000 190.000 $ (115,000) $ (10,000) $ 115,000 $ 70,000 Print Done Further analysis of costs reveals the following percentages of variable costs in each division: Division B A D 85 % 93 % 86 % 75 % Cost of goods sold Selling, general, and administrative expenses 55 % 79 % 71 % 70 % Print Done Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
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