Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thalassines Kataskeves, S.A., of Greece makes product line for several years. The most recent quarterly contribution format income statement for the bilige pump product line

image text in transcribed
image text in transcribed
Thalassines Kataskeves, S.A., of Greece makes product line for several years. The most recent quarterly contribution format income statement for the bilige pump product line follows: marine equipment. The company has been experiencing losses on its bilge pump Thalasninen Kataskeves, S.A. Income Statement-Bilge Pump the Quarter Ended March 31 Sales Variable expensess 490,000 Variable manufacturing expenses Sales commissions shipping 138,00o 53,000 21,000 212,000 278, 000 Total variable expenses Contribution margin Fixed expenses 30,000 36,000 14,000 Advertining (for the bilge pump product 1ine Depreciation of equipment (no resale value) General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 113,000 118,000 s0,0001 361,000 (83,000) Total fixed expenses Net operating loss Common costs allocated ori the basis of machine-hours. tCommon costs allocated on the basis of sales dollars Discontinuing the bilge 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 (disadvantage) 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

Radical Reporting Writing Better Audit Risk Compliance And Information Security Reports

Authors: Sara I. James

1st Edition

1032106042, 978-1032106045

More Books

Students also viewed these Accounting questions

Question

7. Understand the challenges of multilingualism.

Answered: 1 week ago

Question

5. Give examples of variations in contextual rules.

Answered: 1 week ago