Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thalassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 480, eee Sales Variable expenses: Variable manufacturing expenses $ 122,eee Sales commissions 48,eee

image text in transcribed

Thalassines Kataskeves, S.A Income Statement-Bilge Pump For the Quarter Ended March 31 480, eee Sales Variable expenses: Variable manufacturing expenses $ 122,eee Sales commissions 48,eee Shipping Total variable expenses 17,eee 187,eee Contribution margin 293,eee Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) 25,eee 118,eee 42,eee General factory overhead Salary of product-line manager 129,eee Insurance on inventories 11,eee 40, et Purchasing department Total fixed expenses 365, eee (72,eee) Net operating loss Common costs allocated on the basls of machine-hours. tCommon costs allocated on the basls of sales dollars. DIscontinulng the blge pump product line would not affect sales of other product lines and would have no effect on the company's total general factory overhead or total Purchasing Department expenses. Required: What Is the financial advantage (dlsadvantage) of discontinuing the bilge pump product line

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

7th Edition

027378563X, 9780273785637

More Books

Students also viewed these Accounting questions

Question

i need 2 7 .

Answered: 1 week ago

Question

What are the differences between dismissal and discharge?

Answered: 1 week ago