Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $162.000 of the

image text in transcribed
image text in transcribed
Valber Company is considering eliminating its phone division. The company allocates fixed costs based on sales. If the phone division is dropped, $162.000 of the fixed costs allocated to that division could be eliminated. The impact on Volber's operating income from eliminating the phone division would be: Sales Variable costs Contribution margin Fixed costs Net income (loss) Desktops Laptops Tablets $392,000 $907,500 $730,000 213,000 647,000 540,000 179,000 260,500 190,000 83,200 186, 300 150,800 95,800 74,200 39,200 Phones $987,000 807,000 180,000 207,000 (27,000) Multiple Choice $17.000 decrease $162,000 Increase $162,000 decrease $27,000 Increase $18.000 decrease

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

FINANCIAL & MANAGERIAL ACCOUNTING FOR DECISION MAKERS

Authors: Dyckman, Hanlon, Magee, Pfeiffer, Hartgraves, Morse

3rd Edition

1618532340, 9781618532343

More Books

Students also viewed these Accounting questions

Question

What are the factors affecting organisation structure?

Answered: 1 week ago

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago

Question

4. Give examples of five potential appraisal problems.

Answered: 1 week ago

Question

6. Explain how to install a performance management program.

Answered: 1 week ago