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...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$93,000
$85,000
Total variable costs
53,940
51,000
Total contribution margin
$39,060
$34,000
Total fixed costs
Avoidable
28,286
18,266
Unavoidable
22,224
12,694
Profit
$-11,450
$3,040
If X Company drops Product A because it shows a loss and is able to
use the vacant space to increase sales of Product B by $26,000,
with $5,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B: Product A Product...
The following income statement is for X Company's two products,
A and B: Product A Product B Revenue $93,000 $92,000 Total variable
costs 52,080 52,440 Total contribution margin $40,920 $39,560 Total
fixed costs Avoidable 28,480 16,296 Unavoidable 24,260 11,324
Profit $-11,820 $11,940 If X Company drops Product A because it
shows a loss and is able to use the vacant space to increase sales
of Product B by $35,900, with $5,000 of additional fixed costs,
what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A Product...
The following income statement is for X Company's two products,
A and B:
Product A Product B
Revenue $90,000 $94,000
Total variable costs 51,300 56,400
Total contribution margin $38,700 $37,600
Total fixed costs Avoidable 28,837 14,566
Unavoidable 23,593 11,444
Profit $-13,730 $11,590
If X Company drops Product A because it shows a loss and is able
to use the vacant space to increase sales of Product B by $24,600,
with $5,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$91,000
$85,000
Total variable costs
50,960
45,050
Total contribution margin
$40,040
$39,950
Total fixed costs
Avoidable
15,406
28,901
Unavoidable
12,104
25,629
Profit
$12,530
$-14,580
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $28,100,
with $5,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$86,000
$88,000
Total variable costs
49,020
45,760
Total contribution margin
$36,980
$42,240
Total fixed costs
Avoidable
17,561
25,415
Unavoidable
14,959
25,415
Profit
$4,460
$-8,590
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $24,300,
with $5,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$85,000
$93,000
Total variable costs
50,150
53,940
Total contribution margin
$34,850
$39,060
Total fixed costs
Avoidable
31,618
16,949
Unavoidable
24,842
15,031
Profit
$-21,610
$7,080
If X Company drops Product A because it shows a loss and is able to
use the vacant space to increase sales of Product B by $36,600,
with $3,000 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$86,000
$90,000
Total variable costs
49,020
46,800
Total contribution margin
$36,980
$43,200
Total fixed costs
Avoidable
17,083
33,488
Unavoidable
12,887
23,272
Profit
$7,010
$-13,560
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $30,300,
with $4,200 of additional fixed costs, what will be the effect...
The following income statement is for X Company's two products,
A and B:
Product A
Product...
The following income statement is for X Company's two products,
A and B:
Product A
Product B
Revenue
$88,000
$89,000
Total variable costs
51,920
52,510
Total contribution margin
$36,080
$36,490
Total fixed costs
Avoidable
29,468
17,535
Unavoidable
25,102
12,185
Profit
$-18,490
$6,770
If X Company drops Product A because it shows a loss and is able to
use the vacant space to increase sales of Product B by $33,500,
with $4,600 of additional fixed costs, what will be the effect...