Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please see the below information for ( mathrm{XYZ} ) company, and provide the best answer to the decision scenario. Given the above information about XYZ
Please see the below information for \\( \\mathrm{XYZ} \\) company, and provide the best answer to the decision scenario. Given the above information about XYZ company, should XYZ keep or drop Segment C? Keep. XYZ Operating Income will decrease by \\( \\$ 30,000 \\) if the segment is dropped. Drop. XYZ Operating Income will increase by \\( \\$ 6000 \\) if the segment is dropped. Keep. XYZ Operating Income will decrease by \\( \\$ 6000 \\) if the segment is dropped. Drop. XYZ Operating Income will increase by \\( \\$ 90,000 \\) if the segment is dropped. Parker Company has two service departments-cafeteria and engineering-and two operating departments. The number of employees in each department is given below: The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at \\( \\$ 69,375 \\), what would be the amount of cost allocated to Engineering under the direct method? \\[ \\begin{array}{lr} \\$ 3,700 . \\\\ \\$ & 0 . \\\\ \\$ 3,750 . \\\\ \\$ 17,344 \\end{array} \\] XYZ Company produces high-end desk lamps that provide ambiance, as well as light to a desk. Product information for the lamp that \\( X Y Z \\) Company produces is given below: Of the Manufacturing Overhead, \\( \\$ 7 \\) per unit is variable, the rest is a fixed cost that is allocated. A government agency, has approached XYZ Company with a special order for 11 of these lamps. The special lamps would require the government logo be painted on each lamp. The additional cost for doing so would be \\( \\$ 8 \\) per unit. Additionally, a special stencil that costs \\( \\$ 237 \\) would need to be purchased. The stencil would have no future use. The government agency has offered to pay \\( \\$ 221.95 \\) per lamp. Given the above information for XYZ company, what is the Incremental Operating Income (Loss) for accepting the order? \\[ \\begin{array}{l} \\$ 697.45 \\\\ \\$ 2,441.45 \\\\ \\$ 1,507.00 \\\\ \\$ 1,744.00 \\end{array} \\]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started