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TB MC Qu. 10-99 (Algo) Wesley Company makes bowling balls... Wesley Company makes bowling balls and uses the total cost method in setting product prices.
TB MC Qu. 10-99 (Algo) Wesley Company makes bowling balls... Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000 bowling balls follow. The company targets a 12.5% markup on total cost. The dollar markup per unit is: Variable Costs per Unit Direct materials Direct labor Overhead Selling, general, and administrative Fixed Costs (total) $ 66 Overhead 14.10 Selling, general, and administrative 26.00 4.10 $ 219,000 199,000 TB MC Qu. 10-110 (Algo) Gion Company is considering... Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $99,000 as shown below. Segment Income (Loss) Sales $ 1,124,000 Variable costs 989,000 Contribution margin 135,000 Fixed costs 234,000 Income (loss) $ (99,000) If the Windows division is dropped, all of its variable costs are avoidable, and $152,100 of its fixed costs are avoidable. The impact on Gion's operating income from eliminating this business segment would be
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