Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What would be the impact on Blossom's overall operating income if the manufacturing facility is eliminated? O Decrease by $221000 per year. O Increase by
What would be the impact on Blossom's overall operating income if the manufacturing facility is eliminated? O Decrease by $221000 per year. O Increase by $329700 per year. O Decrease by $237700 per year. O Increase by $92000 per year.Blossom Manufacturing has manufacturingfacilities in several locations. One of Blossom's facilities has been showing losses over several quarters, and management is considering closing the facility. If the facility is closed, only two parttime employees will be retained by Blossom. The annual wage of each parttime worker is $16700. This particular location has been in operation for many years. As a result. the manufacturing equipment has no resale value. Following is the most recent income statement for the facility: Sales $3673000 Less: Variable expenses 257-\"?000 Contribution margin 1094000 Less: Fixed expenses Wages 636300 Insurance 17"9100 Depreciation 296300 Advertising 24300 Operating income M92000}
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