Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated.ItemRevenueLess: TVCTCMLess: FC.AdvertisingGen. and Admin.TotalsFacial Tissue33000(11.000)22.000Bathroom Tissue50000(10000)40000Paper Towels25000(12,500)12500Totals108.000(33 500)74500(15000)(8000)(7000)(5000)(4000)2000(13000)28000(7500)If

Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated.ItemRevenueLess: TVCTCMLess: FC.AdvertisingGen. and Admin.TotalsFacial Tissue33000(11.000)22.000Bathroom Tissue50000(10000)40000Paper Towels25000(12,500)12500Totals108.000(33 500)74500(15000)(8000)(7000)(5000)(4000)2000(13000)28000(7500)If the Paper Towel segment is eliminated, costs specific to the segment will be affected as follows:a.bThe Advertising costs will be cut in half with the rest being absorbed by the other segments;The General and Administrative costs will be unaffected.

image text in transcribed
30. Use information below to calculate the change in Net Income if the Paper Towel segment is eliminated. Item Facial Tissue Bathroom Tissue Paper Towels Totals Revenue 33000 50000 25000 108,000 Less: TVC (11,000) (10000) (12,500) (33,500) TCM 22,000 40000 12500 74500 Less: FC: Advertising (15000) (8000) (7000) (30000) Gen. and Admin. (5000) (4000) (13000) (22000) Totals 2000 28000 (7500) 22500 If the Paper Towel segment is eliminated, costs specific to the segment will be affected as follows: a. The Advertising costs will be cut in half with the rest being absorbed by the other segments; b. The General and Administrative costs will be unaffected. ANSWER: (5 pts.)

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_2

Step: 3

blur-text-image_3

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

Financial Shenanigans

Authors: Howard Schilit

2nd Edition

0071386262, 9780071386265

More Books

Students also viewed these Accounting questions

Question

How do equity shareholders exert their influence over a company?

Answered: 1 week ago

Question

What applied experiences do you have? (For Applied Programs Only)

Answered: 1 week ago

Question

how to make heart with python?

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago