Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please explain number 7!!! In deciding which product to emphasize, Gadgets Inc., should focus on the line that has the highest: A. profit per unit

image text in transcribedPlease explain number 7!!!
In deciding which product to emphasize, Gadgets Inc., should focus on the line that has the highest: A. profit per unit of product. B. contribution margin per unit of the constraint. C. contribution margin ratio. D. selling price per unit of product. Signature Corporation has three product lines: silver, gold, and platinum. All three products have a positive contribution margin, but the gold line has an operating loss. Management is considering discontinuing the product. If management decides to discontinue the gold line, then which of the following was (is) true? A. Total cost savings exceeded the lost revenues from discontinuing the line. B. Lost revenues exceeded the cost savings from discontinuing the line C. Operating income will not change. D. Not enough information is present to make that determination Thematics Publishing produces 10,000 binders each year. Each binder has a variable cost of $17 and total fixed costs of $110,000 per year. The binders can be purchased from an outside supplier for $20 each. The production space will remain idle, but fixed costs can be reduced by 30%. The annual impact of purchasing the binders will be to: A. increase operating income by $3,000 B. increase operating income by $47,000 C. decrease operating income by $3,000 D. decrease operating income by 447,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions