Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The management accountant for Healthy Foods has prepared the following segmented income statement for the most current year. Produce Total Sales $80,000 Fish & Meat
The management accountant for Healthy Foods has prepared the following segmented income statement for the most current year. Produce Total Sales $80,000 Fish & Meat Sundries $120,000 $60,000 65.000 20.000 55,000 40,000 21.000 $220,000 121.000 99,000 47.000 52,000 8,000 Variable expenses 36.000 Contribution margin 44,000 Other costs 18.000 Segment margin 26,000 Allocated avoidable costs 2.000 Segment income 24,000 Allocated corporate costs 7,000 Corporate profit $17,000 8.000 34,000 3,000 31.000 32,000 3.000 29.000 44.000 7000 7,000 21.000 $ 23.000 $ 24,000 $ 22,000 If the Fish & Meat department had been discontinued, the short-term effect on corporate profits would be a decrease of: O a $31,000 O b. $55,000 Oc. $34,000 O d. $24,000 Assume that the Sundries department has been discontinued and long-term capacity of the company has had time to adjust. The projected long-term effect of this action on annual corporate profits would be a decrease of: O a $40,000 O b. $22,000 Oc. $32,000 O d. $29,000 department should receive the advertising dollars. Assume an advertising campaign could increase revenues for any of the products by $15,000. To maximize corporate profits, the Assume the cost of the advertising campaign is less than the revenues it generates. O a. Fish & Meat O b. From the information given, the correct product line cannot be determined O c. Produce O d. Sundries
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started