Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Requirement 1. Assuming machine hours is a constraint, which model should Amid emphasize? Product Mix Decision Standard Deluxe Sales price per unit 26 36 Less: 22 Variable cost per unit 27 Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? 22 27 4 9 Less: Variable cost per unit Contribution margin per unit Multiply by: Number of units produced per machine hour Contribution margin per machine hour 37 102 Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: E: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Multiply by: Available capacity (number machine hours) Total contribution margin at full capacity Amid should emphasize the model because it has the higher Requirement 2. Identify and analvze the alternatives. What is the best course of action? Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 3. A local home improvement warehouse store shows the following product line income 1. Amid produces Standard and Deluxe sunglasses: statement for the month. All common fixed costs are allocated to departments based on (Click the icon to view the cost data.) (Click the icon to view additional percentage of sales revenue generated by the department. information.) E: (Click the icon to view the product line income statement for the month.) Assuming machine hours is a constraint, which model should Amid emphasize? Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: Lighting Department would be replaced with a Hardware Department that is expected to B (Click the icon to view the costs.) (Click the icon to view additional information.) have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Identify and analyze the alternatives. What is the best course of action? Requirement 2. Identify and analyze the alternatives. What is the best course of action? Begin by selecting the labels and calculating the net cost when Comfy Socks is making the socks, then calculate the net cost when Comfy Socks is outsourcing the socks when (1) the facilities are idle and when (2) the facilities are used to make other products. (Complete all input fields. Enter a zero for any zero amounts.) Outsource Socks Incremental Analysis Make Facilities Make Other Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: 5: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Outsource Socks Make Facilities Make Other Incremental Analysis Outsourcing Decision Socks Idle Products Plus: Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirements 1. Amid produces Standard and Deluxe sunglasses: - (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: 5: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Plus: Total cost of producing 19,000 socks Less: Mlad... Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Net cost Comfy Socks should because it results in a vnet cost to the company. Requirement 3. Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32.000. Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirements 3. A local home improvement warehouse store shows the following product line income 1. Amid produces Standard and Deluxe sunglasses: statement for the month. All common fixed costs are allocated to departments based on B (Click the icon to view the cost data.) (Click the icon to view additional percentage of sales revenue generated by the department. information.) |(Click the icon to view the product line income statement for the month.) Assuming machine hours is a constraint, which model should Amid emphasize? Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: Lighting Department would be replaced with a Hardware Department that is expected to E: (Click the icon to view the costs.) (Click the icon to view additional information.) have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Identify and analyze the alternatives. What is the best course of action? Requirement 3. Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Incremental Analysis of Discontinuation Decision Total Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? incrementai Analysis OT Discontinuation Decision Totai Less: Income lost if Lighting is discontinued Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) i (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Less: Segment margin provided by the Hardware Department Net benefit of discontinuing the Lighting Department and replacing with a Hardware Department The store managers discontinue the Lighting Department because the seament marain provided by the Hardware Department the income lost if Lighting is Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Segment margin provided by the Hardware Department Net benefit of discontinuing the Lighting Department and replacing with a Hardware Department discontinue the Lighting Department because the segment margin provided by the Hardware Department the income lost if Lighting is The store managers discontinued. Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on narcentage of calaaravanuocanerated by the denartment x Data Table More Info month.) avoidable, should the rently occupied by the that is expected to ed costs of $32,000. Per Pair The company has 22,000 machine hours available. In one machine hour, Amid can produce 95 pairs of the Standard model or 35 pairs of the Deluxe model. Standard Deluxe $ 26 $ 36 Sale price Variable expenses Print Done 22 27 ht because the segment margin provided by the Hardware Department the income lost if Lighting is Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Requirements tatant for the Atla - X Data Table w er 3. A local home improvement warehouse store shows the following product line income Smartments based on More Info month.) avoidable, should the fently occupied by the that is expected to Another manufacturer has offered to sell Comfy Socks similar socks for $9 a pair, a d costs of $32,000. total purchase cost of $171,000. If Comfy Socks outsources and leaves its plant idle, it can save $45,000 of fixed overhead cost. Or the company can use the released facilities to make other products that will contribute $105,000 to profits. In this case, the company will not be able to avoid any fixed costs. n- Direct materials .. $ 15,000 Hd Direct labor. 99,000 JO Variable manufacturing overhead 35,000 60,000 Fixed manufacturing overhead . $ 209,000 wi Print Done Total manufacturing cost. Cost per pair ($209,000 = 19,000) $ 11 er me lost if Lighting Print Done then continue to the next question. - X i Data Table Requirements 1. Amid produces Standard and Dely (Click the icon to view the cost d information.) Assuming machine hours is a constr he following product line income ocated to departments based on ent. ement for the month.) fixed costs are avoidable, should the The space currently occupied by the fe Department that is expected to new direct fixed costs of $32,000. A B D E 1 2. Comfy Socks incurs the following B: (Click the icon to view the costs. Identify and analyze the alternatives. Paint Lumber Lighting Store Total $ 500,000 $ 400,000 $ 100,000 $ 1,000,000 2 Sales 3 Less: Variable Costs 300,000 160,000 50,000 510,000 Segment margin provided by the Ha 4 Contribution margin 200,000 240,000 50,000 490,000 5 Less: Direct Fixed Costs 50,000 40,000 35,000 125,000 Net benefit of discontinuing the Light 6 Less: Common Fixed Costs 100,000 80,000 20,000 200,000 dis The store managers discontinued. 7 Operating Income (Loss) the income lost if Lighting is $ 50,000 $ 120,000 $ 165,000 (5,000) $ Choose from any list or enter any n Print Done Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Requirement 1. Assuming machine hours is a constraint, which model should Amid emphasize? Product Mix Decision Standard Deluxe Sales price per unit 26 36 Less: 22 Variable cost per unit 27 Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? 22 27 4 9 Less: Variable cost per unit Contribution margin per unit Multiply by: Number of units produced per machine hour Contribution margin per machine hour 37 102 Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: E: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Multiply by: Available capacity (number machine hours) Total contribution margin at full capacity Amid should emphasize the model because it has the higher Requirement 2. Identify and analvze the alternatives. What is the best course of action? Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 3. A local home improvement warehouse store shows the following product line income 1. Amid produces Standard and Deluxe sunglasses: statement for the month. All common fixed costs are allocated to departments based on (Click the icon to view the cost data.) (Click the icon to view additional percentage of sales revenue generated by the department. information.) E: (Click the icon to view the product line income statement for the month.) Assuming machine hours is a constraint, which model should Amid emphasize? Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: Lighting Department would be replaced with a Hardware Department that is expected to B (Click the icon to view the costs.) (Click the icon to view additional information.) have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Identify and analyze the alternatives. What is the best course of action? Requirement 2. Identify and analyze the alternatives. What is the best course of action? Begin by selecting the labels and calculating the net cost when Comfy Socks is making the socks, then calculate the net cost when Comfy Socks is outsourcing the socks when (1) the facilities are idle and when (2) the facilities are used to make other products. (Complete all input fields. Enter a zero for any zero amounts.) Outsource Socks Incremental Analysis Make Facilities Make Other Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: 5: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Outsource Socks Make Facilities Make Other Incremental Analysis Outsourcing Decision Socks Idle Products Plus: Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirements 1. Amid produces Standard and Deluxe sunglasses: - (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: 5: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Plus: Total cost of producing 19,000 socks Less: Mlad... Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Net cost Comfy Socks should because it results in a vnet cost to the company. Requirement 3. Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32.000. Choose from any list or enter any number in the input fields and then continue to the next question. ? Requirements 3. A local home improvement warehouse store shows the following product line income 1. Amid produces Standard and Deluxe sunglasses: statement for the month. All common fixed costs are allocated to departments based on B (Click the icon to view the cost data.) (Click the icon to view additional percentage of sales revenue generated by the department. information.) |(Click the icon to view the product line income statement for the month.) Assuming machine hours is a constraint, which model should Amid emphasize? Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: Lighting Department would be replaced with a Hardware Department that is expected to E: (Click the icon to view the costs.) (Click the icon to view additional information.) have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Identify and analyze the alternatives. What is the best course of action? Requirement 3. Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. Incremental Analysis of Discontinuation Decision Total Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: E: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? incrementai Analysis OT Discontinuation Decision Totai Less: Income lost if Lighting is discontinued Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) i (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. E: (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Less: Segment margin provided by the Hardware Department Net benefit of discontinuing the Lighting Department and replacing with a Hardware Department The store managers discontinue the Lighting Department because the seament marain provided by the Hardware Department the income lost if Lighting is Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: (Click the icon to view the cost data.) (Click the icon to view additional information.) Assuming machine hours is a constraint, which model should Amid emphasize? 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on percentage of sales revenue generated by the department. (Click the icon to view the product line income statement for the month.) Assuming $29,500 of the Lighting Department's direct fixed costs are avoidable, should the store managers discontinue the Lighting Department? The space currently occupied by the Lighting Department would be replaced with a Hardware Department that is expected to have sales of $240,000, variable costs of $81,000 and new direct fixed costs of $32,000. 2. Comfy Socks incurs the following costs for 19,000 pairs of its high-tech hiking socks: (Click the icon to view the costs.) (Click the icon to view additional information.) Identify and analyze the alternatives. What is the best course of action? Segment margin provided by the Hardware Department Net benefit of discontinuing the Lighting Department and replacing with a Hardware Department discontinue the Lighting Department because the segment margin provided by the Hardware Department the income lost if Lighting is The store managers discontinued. Choose from any list or enter any number in the input fields and then continue to the next question. Requirements 1. Amid produces Standard and Deluxe sunglasses: 3. A local home improvement warehouse store shows the following product line income statement for the month. All common fixed costs are allocated to departments based on narcentage of calaaravanuocanerated by the denartment x Data Table More Info month.) avoidable, should the rently occupied by the that is expected to ed costs of $32,000. Per Pair The company has 22,000 machine hours available. In one machine hour, Amid can produce 95 pairs of the Standard model or 35 pairs of the Deluxe model. Standard Deluxe $ 26 $ 36 Sale price Variable expenses Print Done 22 27 ht because the segment margin provided by the Hardware Department the income lost if Lighting is Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Requirements tatant for the Atla - X Data Table w er 3. A local home improvement warehouse store shows the following product line income Smartments based on More Info month.) avoidable, should the fently occupied by the that is expected to Another manufacturer has offered to sell Comfy Socks similar socks for $9 a pair, a d costs of $32,000. total purchase cost of $171,000. If Comfy Socks outsources and leaves its plant idle, it can save $45,000 of fixed overhead cost. Or the company can use the released facilities to make other products that will contribute $105,000 to profits. In this case, the company will not be able to avoid any fixed costs. n- Direct materials .. $ 15,000 Hd Direct labor. 99,000 JO Variable manufacturing overhead 35,000 60,000 Fixed manufacturing overhead . $ 209,000 wi Print Done Total manufacturing cost. Cost per pair ($209,000 = 19,000) $ 11 er me lost if Lighting Print Done then continue to the next question. - X i Data Table Requirements 1. Amid produces Standard and Dely (Click the icon to view the cost d information.) Assuming machine hours is a constr he following product line income ocated to departments based on ent. ement for the month.) fixed costs are avoidable, should the The space currently occupied by the fe Department that is expected to new direct fixed costs of $32,000. A B D E 1 2. Comfy Socks incurs the following B: (Click the icon to view the costs. Identify and analyze the alternatives. Paint Lumber Lighting Store Total $ 500,000 $ 400,000 $ 100,000 $ 1,000,000 2 Sales 3 Less: Variable Costs 300,000 160,000 50,000 510,000 Segment margin provided by the Ha 4 Contribution margin 200,000 240,000 50,000 490,000 5 Less: Direct Fixed Costs 50,000 40,000 35,000 125,000 Net benefit of discontinuing the Light 6 Less: Common Fixed Costs 100,000 80,000 20,000 200,000 dis The store managers discontinued. 7 Operating Income (Loss) the income lost if Lighting is $ 50,000 $ 120,000 $ 165,000 (5,000) $ Choose from any list or enter any n Print Done