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Please show work by entering the formula into each yellow box. For example: C2+C1= 100... Otherwise the work will be marked incorrect. Thanks! begin{tabular}{|c|c|c|c|c|c|} hline
Please show work by entering the formula into each yellow box. For example: C2+C1= 100... Otherwise the work will be marked incorrect. Thanks!
\begin{tabular}{|c|c|c|c|c|c|} \hline 31 & \begin{tabular}{l} Management believes that \\ income statement look like \end{tabular} & \begin{tabular}{l} by dropping Forg \\ if this happens? \end{tabular} & & & 15 wili ue \\ \hline 32 & & & & & \\ \hline 33 & \multicolumn{3}{|c|}{ Hint: Use the original data to fill and compute amounts. } & & \\ \hline 34 & & & & & \\ \hline 35 & \multicolumn{2}{|c|}{ Decrease in Prefabrications Sales } & 10% & & \\ \hline 36 & \multicolumn{2}{|l|}{ Decrease in Casting Sales } & 15% & & \\ \hline 37 & & & & & \\ \hline 38 & & Prefabrications & Casting & Forging & Total \\ \hline 39 & Sales & & & $ & \\ \hline 40 & Variable Cost & & & - & \\ \hline 41 & Contribution Margin & & & - & \\ \hline 42 & Direct Fixed Costs & & & - & F \\ \hline 43 & Segment Margin & & & - & \\ \hline 44 & Common Fixed Costs & & & - & F \\ \hline 45 & Net Operating Income & & & $ & \\ \hline 46 & & & & & \\ \hline \end{tabular} To prevent sales of Prefabrications and Casting from decreasing, management proposes launching a marketing 47 campaign to increase the remaining segments' sales, but this will also increase common costs. What will the income statement look like if this happens? Hint: Use the original data to fill and compute amounts. \begin{tabular}{|l|r|} \hline Increase to Common Fixed Costs & $ \\ Increase to Sales of Prefabrications & 15% \\ Increase to Sales of Casting & 20% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|l|}{54} \\ \hline 55 & & Prefabrications & Casting & Forging & Total \\ \hline 56 & Sales & & & $ & \\ \hline 57 & Variable Cost & & & - & \\ \hline 58 & Contribution Margin & & & - & \\ \hline 59 & Direct Fixed Costs & & & - & \\ \hline 60 & Segment Margin & & & - & \\ \hline 61 & Common Fixed Costs & & & - & \\ \hline 62 & Net Operating Income & & & $ & \\ \hline \multicolumn{6}{|l|}{63} \\ \hline 64 & \multicolumn{3}{|c|}{ Should Tempermure Company drop Forging? } & & \\ \hline 65 & & & & & \\ \hline \end{tabular} 2 Tampermure Company has three product segments: Prefabrications, Castings, and Forging. Forging seems to be unprofitable and management is considering dropping the segment entirely. Fixed Costs have been separated into Direct and Common. Direct Fixed Costs are correlated to the product line. Common Fixed Costs are facility level activities allocated as a percentage of total revenue. Required: Compute the allocation of Common Fixed Costs and Net Operating Income for each segment and the total. Tampermure Company's management recommends that Forging be dropped immediately to increase profits. Show what happens to Tampermure Company's income statement if this happens
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