XYZ manufactures and sells a number of products, including
Product G. Results for last year for...
XYZ manufactures and sells a number of products, including
Product G. Results for last year for the manufacture and sale of
Product G are as follows: Sales $50,000 Less expenses: Variable
costs $40,000 Fixed costs 36,000 76,000 Net operating loss
$(26,000) XYZ is trying to decide whether or not to discontinue
Product G. Two thirds of fixed costs are avoidable if the product
is dropped. Assume that dropping Product G will have no effect on
other products. What is the...
Balser Company manufactures and sells a product called JYMP.
Results of last year for the manufacture...
Balser Company manufactures and sells a product called JYMP.
Results of last year for the manufacture and sale of JYMP's are as
follows:
Sales (8,000 JYMPs at £120 each) £960,000
Less costs:
Variable production costs 464,000
Sales commissions (15% of sales) 144,000
Salary of product line manager 100,000
Fixed product line advertising 160,000
Fixed manufacturing overhead 132,000
Total costs 1,000,000
Net operating loss £(40,000)
Balser anticipates no change in the operating results for JYMP
in the foreseeable future. Balser is...
XYZ sells 20,000 units of Product A each year. The unit selling
price of Product A...
XYZ sells 20,000 units of Product A each year. The unit selling
price of Product A is $80, and the unit variable expenses are $72.
An investigation shows that $140,000 of the $240,000 fixed expenses
charged to Product A would not be avoidable if the product was
discontinued. If Product A is discontinued, what is the annual
financial advantage (disadvantage) of eliminating this product?
$60,000
($80,000)
($60,000)
$80,000
Han Products manufactures 26,000 units of part S-6 each year for
use on its production line....
Han Products manufactures 26,000 units of part S-6 each year for
use on its production line. At this level of activity, the cost per
unit for part S-6 is:
Direct materials
$
4.00
Direct labor
9.00
Variable manufacturing overhead
2.00
Fixed manufacturing overhead
9.00
Total cost per part
$
24.00
An outside supplier has offered to sell 26,000 units of part S-6
each year to Han Products for $20 per part. If Han Products accepts
this offer, the facilities now...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not
performing well:
Details
Total
Product G
Product B
Sales
430,000
320,000
110,000
Variable expenses
300,000
210,000
90,000
Contribution margin
160,000
110,000
20,000
Fixed expenses:
Rent
30,000
20,000
10,000
Depreciation
15,000
10,000
5,000
Maintenance
20,000
14,000
6,000
Supervisor salaries
48,000
28,000
20,000
manufacturing overhead
16,000
12,000
4,000
Net Income (loss)
1,000
26,000
(25,000)
Additional Information:
Rent is for one plant space where the two products...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not
performing well:
Details
Total
Product G
Product B
Sales
430,000
320,000
110,000
Variable expenses
300,000
210,000
90,000
Contribution margin
160,000
110,000
20,000
Fixed expenses:
Rent
30,000
20,000
10,000
Depreciation
15,000
10,000
5,000
Maintenance
20,000
14,000
6,000
Supervisor salaries
48,000
28,000
20,000
manufacturing overhead
16,000
12,000
4,000
Net Income (loss)
1,000
26,000
(25,000)
Additional Information:
Rent is for one plant space where the two products...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not...
Adidas manufactures two products; the following
contribution format income statement shows that product B is not
performing well.
Required:
Conduct a scientific analysis to help Adidas
management to decide whether to drop product B or
to keep it:
Details
Total
Product G
Product B
Sales
430,000
320,000
110,000
Variable expenses
300,000
210,000
90,000
Contribution margin
160,000
110,000
20,000
Fixed expenses:
Rent
30,000
20,000
10,000
Depreciation
15,000
10,000
5,000
Maintenance
20,000
14,000
6,000
Supervisor salaries
48,000
28,000
20,000
manufacturing overhead
16,000...
Smyth Corporation is considering dropping product C78D. Data
from the company's accounting system appear below:
Sales...
Smyth Corporation is considering dropping product C78D. Data
from the company's accounting system appear below:
Sales
$
803,200
Variable expenses
$
417,300
Fixed manufacturing expenses
$
273,000
Fixed selling and administrative expenses
$
233,000
All fixed expenses of the company are fully allocated to
products in the company's accounting system. Further investigation
has revealed that $193,000 of the fixed manufacturing expenses and
$167,300 of the fixed selling and administrative expenses are
avoidable if product C78D is discontinued.
What would be...
The management of Ismail Manufacturing Corporation is
considering dropping product M12C. Data from the company's
accounting...
The management of Ismail Manufacturing Corporation is
considering dropping product M12C. Data from the company's
accounting system appear below:
Sales
$550,000
Variable expenses
$242,000
Fixed manufacturing expenses
$250,000
Fixed selling and administrative expenses
$150,000
All fixed expenses of the company are fully allocated to
products in the company's accounting system. Further investigation
has revealed that $170,000 of the fixed manufacturing expenses and
$90,000 of the fixed selling and administrative expenses are
avoidable if product M12C is discontinued.
Determine the financial...
Suire Corporation is considering dropping product D14E. Data
from the company's accounting system appear below:
Sales...
Suire Corporation is considering dropping product D14E. Data
from the company's accounting system appear below:
Sales
$
800,000
Variable expenses
$
381,000
Fixed manufacturing expenses
$
263,000
Fixed selling and administrative expenses
$
211,000
All fixed expenses of the company are fully allocated to
products in the company's accounting system. Further investigation
has revealed that $202,500 of the fixed manufacturing expenses and
$117,500 of the fixed selling and administrative expenses are
avoidable if product D14E is...