Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We the followintomation to actions 28.29. Narthan three divisions (Chod, Tolbot, and Heather with the following information: Chad Talbot Heather Total Sales Revenue $60,000 $50,000

image text in transcribed
image text in transcribed
We the followintomation to actions 28.29. Narthan three divisions (Chod, Tolbot, and Heather with the following information: Chad Talbot Heather Total Sales Revenue $60,000 $50,000 $40,000 $150,000 Varcast $35.000 $28.000 $30.000 $93.000 $25,000 $22.000 $10,000 $57.000 Less Direct Fixed Cost $5.500 $4,500 $6.500 $16.500 Segment Margin $19.500 $17.500 $3,500 $40,500 Less Common Fixed Costs $11.000 $10.500 $6.000 $22.500 Net Operating Income (Loss) $8.500 $2.000 ($2.500) $13.000 Market is considering eliminating its Heather division. How much will Market's net operating income increase or decrease if Heather is eliminated $4.000 decrease $3.500 decrease $2.500 increase $2.500 decrease Matheson (Chad Talbot, and Heather with the following formation Chad Talbot Heather Total Sales Reserve $60.000 $50.000 $40.000 $150,000 Var cost $325.000 $28.000 $30.000 $23.000 $25,000 $22,000 $10,000 $57,000 Loss Direct Fixed Cost $5.500 $4.500 $6,500 $16.500 Segment Margin $19.500 $17.500 $3,500 $40.500 Less Common Fixed Costs $11.000 $10.500 $6.000 $27.500 Net Operating Income (Loss) $8.500 $2.000 (52500) $13.000 Now suppose that $4,000 of the common fixed costs could be avoided if the Heather division was eliminated. Now how much will Market's net operating income increase or decrease if Heather is eliminated? 1 51.500 decrease $1.500 increase $500 Increase $500 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_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

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

4th Edition

0073379352, 9780073379357

More Books

Students also viewed these Accounting questions

Question

Differentiate the function. r(z) = 2-8 - 21/2 r'(z) =

Answered: 1 week ago