Segment variable costing income statement and effect en income of change in operations OB1. 4Use variable costing for analyzing marker segments, inclualing product, terrilories, and salespersebs sopecet: Valdespin Company manufactures there sines of carping tertssmall (5), modium (M), and large (L). The incoene statornent has conssitently indicated a net loos foe the M sine, and munugement is consalering three peoposals: (1) coetinas Sane M, (2) descentinue Sue M and roduce total octput acondinely, er (3) disoentinue fire M and conduct an adventising campaign to expand the seles of Sire S%0 that the entire plant capacify can continue to be wool. If Properal 2 is selected and Size M is divecetined and prodection curtailed, the annual fixod prodaction coots and fixod operating expenses could be redased by $46,080 and $32.240 repectively. If Proposal 3 is selected, it is anticipaded that an adliticeal antual expenditure of 54,560 for the rental of additional watchouse space meald yield an additional 1300 . is Sire S sales volane. It is alwo assumod that the incrasod production of Sane S would sfilize the plant facilitics released by the diseontinunce of Suec M. The sales and costs have been relatively sable wour the pas few years, and they are expected to remain so for the foessecable furure. The income statement for the past year endod lene 30, 2016, is as follows: Instructicen 1. Prepare an income stalenaent for the past year in the vacible costing format. Use the following headinp: sum 5 ine Data for each style shoeld be roponed through conarbution maryin. The ficed costs shoeld be deducted from the total coetribution marpin as reported in the "Total" column, bo determie incoene froen operations. 2. Based os the income statement preparet in (1) and the ether data presemtad, determine the amount by which socal aneal inceene from operations would be reduced beloen its persent level if Proposal 2 is accepted. 3. Prepare an income statement in the variable ensting fomut, indicating the prejected anreal incoms fooe eperatices if Prepocal 3 is abocpest. Use the following bcatiogs: Sis line Data for each style showld be teported through coetribution maryin. The focd costs sheeld be deducted frum the toul coetribution maryin as reported in the "Toar" column. For purposos of this pooblem, the expenditure of $34,560 for the rental of adfitienal warchouse space can be added to the fixed egerating expenses. 4. By how much would tocal annual incene increase above its presen level if Proposal 3 is acecplod? Explain. Segment variable costing inceme statement and effect en income of change in operations OB3, 4Use variable costing for analyzing marker segments, isclualing probuct, territorics, and saleepervees sogents. x2= Valdespin Company manufactures thece sunes of canping tertysmall (S), modium (M), and large (L.). The incoese statrisent has conssicntly indicated a set loss for the M sine, and munagement is consalering three peoposals: (1) coetinas Sure M, Q) discontinue Sioe M and roduce total output acondingly, er (3) discoetinue Sive M and sonduct an adventising campuign to expand be sules of Sire S so that the entire plant capacify can continue so be wodt. If Proposal 2 is selected and Sine M is dincoetinaed and prodextion curtailod, the annesal fixod prodaction coots and fixod operating expenses could be redaced by $46,080 and $32.240 repectively. If Proposal 3 is selected, if is anticipaled but an adlitioeul antnal expenditure of 54,560 for the rental of adtitrional watchouse space weeld yield an additional 130% is Sier S seles volane. It is alwo assumod that the incrased production of Sare S would sfilize the plant facilitics relcased by the diseontinunce of Sire M. The sales and costs have been relatively sable oner the pas few years, and they are expected to remais so for the foessecable furure. The income statement for the pat year ended Jane 30, 2016, is as follows: Instracticen: 1. Prepare an income stanconent for the past year in the vaciolele costing: format. Use the folowing headitip: sin 5 Mitine Data for each style shovild be roportod through coenthution maryin. The ficed costs sheeld be deducted from the wotal coecribution marpin, as reported in the "Tetal columm, bo determiee isovese freen operations. 2. Based os the income statement preparet in (1) and the ceher data opcrations would be reducod belone its pecsent level if Proposal 2 is ackepted. 3. Prepare an income statcincent in the variable enstine fomat, indicating the projected annal income fooe egerafices if Propersal 3 is acocped: Use the following beadirgh: sis liel Data for each style should be tcportad throuth ovetributice maryin. The fixed costs sheeld be deducted from the tutal cercribucice martin as reporicd in the "Toul" oolumn. Fer parposos of thes pooblom, the expenditure of $34,560 foe the rental of adkitional warchouse space can be added to the fixed egerating ergenses: 4 By how much would toeal anmul incoene increase above its presen level if Proposal 3 is acecplod? Forlain. Segment variable costing income statement and effect en income of change in operations OB1. 4Use variable costing for analyzing marker segments, inclualing product, terrilories, and salespersebs sopecet: Valdespin Company manufactures there sines of carping tertssmall (5), modium (M), and large (L). The incoene statornent has conssitently indicated a net loos foe the M sine, and munugement is consalering three peoposals: (1) coetinas Sane M, (2) descentinue Sue M and roduce total octput acondinely, er (3) disoentinue fire M and conduct an adventising campaign to expand the seles of Sire S%0 that the entire plant capacify can continue to be wool. If Properal 2 is selected and Size M is divecetined and prodection curtailed, the annual fixod prodaction coots and fixod operating expenses could be redased by $46,080 and $32.240 repectively. If Proposal 3 is selected, it is anticipaded that an adliticeal antual expenditure of 54,560 for the rental of additional watchouse space meald yield an additional 1300 . is Sire S sales volane. It is alwo assumod that the incrasod production of Sane S would sfilize the plant facilitics released by the diseontinunce of Suec M. The sales and costs have been relatively sable wour the pas few years, and they are expected to remain so for the foessecable furure. The income statement for the past year endod lene 30, 2016, is as follows: Instructicen 1. Prepare an income stalenaent for the past year in the vacible costing format. Use the following headinp: sum 5 ine Data for each style shoeld be roponed through conarbution maryin. The ficed costs shoeld be deducted from the total coetribution marpin as reported in the "Total" column, bo determie incoene froen operations. 2. Based os the income statement preparet in (1) and the ether data presemtad, determine the amount by which socal aneal inceene from operations would be reduced beloen its persent level if Proposal 2 is accepted. 3. Prepare an income statement in the variable ensting fomut, indicating the prejected anreal incoms fooe eperatices if Prepocal 3 is abocpest. Use the following bcatiogs: Sis line Data for each style showld be teported through coetribution maryin. The focd costs sheeld be deducted frum the toul coetribution maryin as reported in the "Toar" column. For purposos of this pooblem, the expenditure of $34,560 for the rental of adfitienal warchouse space can be added to the fixed egerating expenses. 4. By how much would tocal annual incene increase above its presen level if Proposal 3 is acecplod? Explain. Segment variable costing inceme statement and effect en income of change in operations OB3, 4Use variable costing for analyzing marker segments, isclualing probuct, territorics, and saleepervees sogents. x2= Valdespin Company manufactures thece sunes of canping tertysmall (S), modium (M), and large (L.). The incoese statrisent has conssicntly indicated a set loss for the M sine, and munagement is consalering three peoposals: (1) coetinas Sure M, Q) discontinue Sioe M and roduce total output acondingly, er (3) discoetinue Sive M and sonduct an adventising campuign to expand be sules of Sire S so that the entire plant capacify can continue so be wodt. If Proposal 2 is selected and Sine M is dincoetinaed and prodextion curtailod, the annesal fixod prodaction coots and fixod operating expenses could be redaced by $46,080 and $32.240 repectively. If Proposal 3 is selected, if is anticipaled but an adlitioeul antnal expenditure of 54,560 for the rental of adtitrional watchouse space weeld yield an additional 130% is Sier S seles volane. It is alwo assumod that the incrased production of Sare S would sfilize the plant facilitics relcased by the diseontinunce of Sire M. The sales and costs have been relatively sable oner the pas few years, and they are expected to remais so for the foessecable furure. The income statement for the pat year ended Jane 30, 2016, is as follows: Instracticen: 1. Prepare an income stanconent for the past year in the vaciolele costing: format. Use the folowing headitip: sin 5 Mitine Data for each style shovild be roportod through coenthution maryin. The ficed costs sheeld be deducted from the wotal coecribution marpin, as reported in the "Tetal columm, bo determiee isovese freen operations. 2. Based os the income statement preparet in (1) and the ceher data opcrations would be reducod belone its pecsent level if Proposal 2 is ackepted. 3. Prepare an income statcincent in the variable enstine fomat, indicating the projected annal income fooe egerafices if Propersal 3 is acocped: Use the following beadirgh: sis liel Data for each style should be tcportad throuth ovetributice maryin. The fixed costs sheeld be deducted from the tutal cercribucice martin as reporicd in the "Toul" oolumn. Fer parposos of thes pooblom, the expenditure of $34,560 foe the rental of adkitional warchouse space can be added to the fixed egerating ergenses: 4 By how much would toeal anmul incoene increase above its presen level if Proposal 3 is acecplod? Forlain