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Required information Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product J are as follows: Sales
Required information Bingham Company manufactures and sells Product J. Results for last year for the manufacture and sale of Product J are as follows: Sales (10,000 units at $200 each) Less Costs Variable Production Costs Sales Commissions 15% of Sales Salaries of Line Supervisors Traceable Fixed Factory Overhead (Allocated to product on the Basis of Square Meters Occupied) Total Cost Operating income (LOSS) $2,000,000 $960,000 $300,000 $300.000 $180,000 $170.000 $1.910.00 $90.000 Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Product. The company's total fixed factory overhead cost would not be affected by this decision Assume that discontinuing Product would result in a $100,000 Increase in the contribution margin of other product lines. How many units of Product I would have to be sold next year for the company to be as well off as if it just dropped Product and enjoyed the increase in contribution margin from other products? (Round your final answers to nearest whole number) Multiple Choice 15,000 units Bingham Company anticipates no change in the operating result for Product in the foreseeable future if the product is produced, Bingham is re-examining all of its products and is trying to decide whether or not to discontinue the manufacture and sale of Products. The company's total fixed factory overhead cost would not be affected by this decision Assume that discontinuing Product would result in a $100.000 increase in the contribution margin of other product lines. How many units of Product J would have to be sold next year for the company to be as well of as if just dropped Product J and enjoyed the increase in contribution margin from other products? (Round your final answers to nearest whole number) Multiple Choice 15,500 units O 0.125 units 2.500 units 7838
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