Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thalassines Kataskeves, SA., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most

image text in transcribed
image text in transcribed
Thalassines Kataskeves, SA., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump follows: Thalasines Kataskeves, S.A. Incose Statenent-Bilge Pump Sales For the Quarter Ended March 31 Variable expenses: Variable manucturing expenses sales comaissions shipping rotal variable expenses Contribution margin Fixed expenses: Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) General factory overhead salary of product-line nanager Insurance on inventories Purchasing department Total fixed expenses Net operating loss "Common costs allocated on the basis of machine-hours 3410,000 $123,009 54,eg 11,600 222,090188,696 29,000 111,009 47,600 127,000 11,000 59,009 384, 090 \& (162,099) tCommon costs allocated on the basis of sales doliars. Discontinuing the bilge pump 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: Required: What is the financial advantage (disadvantage) of discontinuing the bilge pump? Financial advantage Financial (disadvantage)

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

The Audit Process Principles Practice And Cases

Authors: Iain Gray, Stuart Manson,

4th ISA Edition

1844806782, 9781844806782

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

5. Identify and describe nine social and cultural identities.

Answered: 1 week ago

Question

2. Define identity.

Answered: 1 week ago

Question

4. Describe phases of majority identity development.

Answered: 1 week ago