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this is all one question just multiple parts PA7-3 (Static) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5) Mohave Corp. is considering eliminating a product from its

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PA7-3 (Static) Analyzing Keep-or-Drop Decision [LO 7-2, 7-5) Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal Mohave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Indigo Verde ATUI Total Sales revenue $60,000 $60,000 $30,000 $150,000 Variable costs 26.000 91,00 Contribution margin $26.000 $29.000 $ 4,000 $ 59,00 Less Direct fixed costs 1,900 2,500 2, Segment margin $24,100 $26,500 $ 2.000 $ 52,600 Common fixed costs 12.140 17.30 8.920 Net operating income (los) $ 3,660 56,920) 53,000 "Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required: 1-6. Complete the table given below, assuming Mohave Corp drops the Azul line. 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-a. Complete the table given below assuming that Mohave had no direct fwed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 1B Reg 1A Reg 2 Reg 3 Reg 30 Reg 3 Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp. drops the Azul line. 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2 Should Mohave drop the Azul model? 3-a. Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost. 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2 Req 3A Reg 38 Reg 3 Complete the table given below, assuming Mohave Corp. drops the Azul line. (Do not round intermediate calculations. Round Common Fixed Costs to the nearest whole dollar.) Indigo Verde Total Sales Revenue Variable Costs Contribution Margin Direct Fixed Costs Segment Margin Common Fixed Costs Net Operating Income (Loss) spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal Mohave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Indigo Verde Sales revenue $60,000 $60,000 Variable costs 34, 31,000 Contribution margin $26,000 $29,90 Less: Direct Fixed costs 1, Segment margin $24,100 $26,500 Common Fixed costs 17,840 17,840 Net operating income (less) $ 6,260 8,660 Arul Total $10.00 $150,000 26,000 91.00 $ 4.000 $ 59, 2.00 6.400 $ 2.000 $ 52,600 8,920 516,920) 53,000 *Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent respectively Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common foved costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp drops the Azul line 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-o. Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost 3.b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 3B Reg 3 Reg 3A Reg 1A Reg 18 Reg 2 Will Mohave's net operating income increase or decrease if the Azul model is eliminated by how much? Change in Net Operating Income (Loss) spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal. Mohave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohave's Sand Trap Beach wbrella Products Indigo Verde Sales revenue $60,000 560,000 Variable costs 34,000 31,00 Contribution margin $26.000 $29,00 Less: Direct fixed costs 1,00 2,50 Segment margin $24,100 $26,500 Common fixed costs 17,840 17.30 Net operating income (loss) 56,260 $ 3,660 Total $30,000 $150.000 91,000 $4,000 $ 59,00 2. 6,400 $ 2,000 $ 52,600 8,92 44,600 36.220) 33.000 "Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common foved costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp drops the Azul line 1-b. Will Mohave's net operating income increase or decrease of the Azul model is eliminated by how much? 2. Should Mohave drop the Azul model? 3.o. Complete the table given below assuming that Mohave had no direct foed overheid in its production information and the entire $51,000 of fixed cost was common foxed cost. 3.b. Should Mohave drop the Azul model? 3.c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2 Reg 3 Reg38 Rea 30 Should Mohave drop the Azul model? Yes ONO Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp. drops the Azul line. 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-o. Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost. 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Keq 3A Reg 3B Reg 3C Complete the table given below assuming that Mohave had no direct fixed overhead in its production information and the entire $51,000 of fixed cost was common fixed cost. Change in Contribution Margin Contribution Margin Gained on Indigo Contribution Margin Gained on Verde Contribution Margin Lost on Azul Net Increase in Contribution Margin Change in Fixed Costs Net Change in Profit il Azul is Eliminated spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal Mohave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohave's Sand Trap Beach Werelle Products Verde Azul Total Sales revenue $60,000 $60,000 $30,000 $150,000 Variable costs 34,000 31,000 26,000 91,00 Contribution margin $26,000 $29.000 $ 4,000 $ 59,000 Less: Direct fixed costs 1,900 2.500 2,000 6,400 Segment margin $24,100 $26,500 $ 2,000 $ 52,600 Common Fixed costs 17.40 17,40 8,920 44.500 Net operating income (loss) $ 6,260 $0.660 56.920) $3.000 *Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp.drops the Azul line 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-0. Complete the table given below assuming that Mohave had no direct fixed overheid in its production Information and the entire $51,000 of fixed cost was common fixed cost. 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Req1A Reg 10 Reg 2 Reg 3 Reg 10 Reg 30 Should Mohave drop the Azul model? Yes ONO HELLULUHU HULLE HET spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal. Mohave's information related to the Sand Trap line is shown below. Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Indigo Verde Sales revenue $60,000 $60,000 Variable costs 34,000 31,00 Contribution margin $26.000 $29.000 Less Direct Fixed costs 1,900 2.5 Segment margin $24,100 $26.500 Common fixed costs" 17,840 17,840 Net operating income (loss) $ 3,660 $30.000 26,00 $ 4,000 2,000 $ 2,000 Total $150,000 91,000 $59,000 6,400 $ 52,600 576.920) 50.000 "Allocated based on total sales revenue Mohave has determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common fixed costs are unavoidable. The common fixed costs would be redistributed to the remaining two products Required: 1-a. Complete the table given below, assuming Mohave Corp drops the Azul line. 1-b. Will Mohave's net operating income increase or decrease if the Azul model is eliminated? By how much? 2. Should Mohave drop the Azul model? 3-o. Complete the table given below assuming that Mohave had no direct fixed overhead in its production Information and the entire $51,000 of fixed cost was common fixed cost 3-b. Should Mohave drop the Azul model? 3-c. What is the increase or decrease in the net operating income of Mohave? Complete this question by entering your answers in the tabs below. Reg 1A Reg 13 Reg 2 Reg 3A Reg 38 Reg 3C What is the increase or decrease in the net operating income of Mohave? Change in Net Operating Income (Loss)

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