Question
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $4,000. The division sales for the
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $4,000. The division sales for the year were $1,051,000 and the variable costs were $861,000. The fixed costs of the division were $194,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be A. $58,200 decrease B. $131,800 decrease C. $55,100 decrease D. $190,000 increase E. $190,000 decrease
Front Company had net income of $75,500 based on variable costing. Beginning and ending inventories were 1,100 units and 1,800 units, respectively. Assume the fixed overhead per unit was $8.05 for both the beginning and ending inventory. What is net income under absorption costing? A. $69,865 B. $81,135 C. $98,845 D. $52,155 E. $76,050
Based on a predicted level of production and sales of 22,700 units, a company anticipates total variable costs of $102,150, fixed costs of $30,700, and operating income of $53,290. Based on this information, the budgeted amount of sales for 20,700 units would be A. $186,140 B. $169,740 C. $204,125 D. $121,145 E. $145,686
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