Top managers of are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision:
Total Blue-Ray Discs DVD Discs
Sales Revenue $432,000 $305,000 $127,000
Variable Costs $246,000 $150,000 $96,000
Contribution Margin $186,000 $155,000 $31,000
Fixed Costs:
Manufacturing $128,000 $71,000 $57,000
Selling and Administrative $67,000 $52,000 $15,000
Total Fixed Costs $195,000 $123,000 $72,000
Operating Income (loss) $(9000) $32,000 $(41,000)
Total fixed costs will not change if the company stops selling DVDs.
Required:
a. Prepare a differential analysis to show whether Movie Street should drop the DVD product line.
b. Will dropping DVDs add $41,000 to the operating income? Explain.
Answers: 3
Business, 22.06.2019 12:10
Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?
Answers: 2
Business, 22.06.2019 20:40
Which one of the following statements is correct? process costing systems use periodic inventory systems. process costing systems assign costs to departments or processes for a time period. companies that produce many different products or services are more likely to use process costing systems. production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.
Answers: 2
Business, 22.06.2019 23:30
Sole proprietorships produce more goods and services than does any other form of business organization.
Answers: 2
Business, 23.06.2019 01:30
Which of the following is considered part of a country’s infrastructure?
Answers: 3
Top managers of are alarmed by their operating losses. They are considering dropping the laminate fl...
Mathematics, 22.04.2021 22:50
History, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50
History, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50
Mathematics, 22.04.2021 22:50