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Required information [The following information applies to the questions displayed below] Pepper's Automotive produces auto parts for various automotive retailers. Pepper's is evaluating the exhaust
Required information [The following information applies to the questions displayed below] Pepper's Automotive produces auto parts for various automotive retailers. Pepper's is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,390,000, variable costs are $482,000, and fixed costs are $569,000. Of the fixed costs, controllable fixed costs are $126,000 and noncontrollable fixed costs are $443,000. What are the controllable margin and total contribution by profit center (CPC), respectively? O Controllable margin: $782,000; CPC: $465,000 O Controllable margin: $908,000; CPC: $339,000 Controllable margin: $908,000; CPC: $126,000 O Controllable margin: $782,000; CPC: $339,000 Required information [The following information applies to the questions displayed below.) Pepper's Automotive produces auto parts for various automotive retailers. Pepper's is evaluating the exhaust system division of the company and has come up with the following data for the year: net revenues are $1,390,000, variable costs are $482,000, and fixed costs are $569,000. Of the fixed costs, controllable fixed costs are $126,000 and noncontrollable fixed costs are $443,000. Pepper's Automotive has further analyzed the exhaust system division into three products: exhaust pipes, intake valves, and intake pipes. The income statement is available below. If intake valves were dropped, what would be the change in profits in the short run and the long run, respectively? Net revenues Variable costs Contribution margin Controllable fixed costs Controllable margin Noncontrollable fixed costs Contribution by profit center Exhaust Pipes $630,000 Intake Valves $430,000 Intake Pipes $330,000 63,000 215,000 567,000 215,000 204,000 126,000 63,000 0 504,000 165,000 126,000 63,000 63,000 152,000 215,000 $ 339,000 $ (63,000) $ 63,000 O Short run: $152,000 decrease; long run: $63,000 increase O Short run: $215,000 increase; long run: $63,000 decrease O Short run: $152,000 increase; long run: $63,000 decrease O Short run: $63,000 increase; long run: $152,000 decrease
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