Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The CPBS division (British Flavors) of Cam Bowles Soup Company is broken down into the following 4 soups; Cream of Tomato, Pea and Ham, Roasted

image text in transcribed

The CPBS division (British Flavors) of Cam Bowles Soup Company is broken down into the following 4 soups; Cream of Tomato, Pea and Ham, Roasted Cauliflower & Turmeric, and Smoked Haddock Chowder. The total fixed expenses do not change, and they are allocated to each division proportionally based on sales dollars. The following is a side by side comparison of each soup's income statement Roasted Cauliflower Sales COGS Gross Margin Variable Expenses Fixed Expenses Total Expense Income from Oper. & Turmeric $4,860,000 $2,246,000 $2,614,000 $1,957,800 $1,069,200 $3,027,000 -$413,000 Cream of Tomato $9,760,000 $3,924,000 $5,836,000 $2,036,800 $2,147,200 $4,184,000 $1,653,000 Smoked Haddock Chowder $4,380,000 $1,763,000 $2,617,000 $1,343,400 $963,600 $2,307,000 $ 310,000 Pea and Ham $5,300,000 $2,138,000 $3,162,000 $1,067,000 $1,166,000 $2,233,000 $ 929,000 What is the change in income from operations if the Roasted Cauliflower & Turmeric Soup is discontinued

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

Students also viewed these Accounting questions