What the effect on the company overall net operating income

Assignment Help Accounting Basics
Reference no: EM131824877

Question - The management of Thermo Corporation is considering dropping product S38C. Data from the company's accounting system appear below:

Sales - $980,000

Variable expenses - 568,000

Fixed manufacturing expenses - 314,000

Fixed selling and administration expenses - 196,000

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $280,000 of the fixed manufacturing expenses and $140,000 of the fixed selling and administrative expenses are avoidable if product S38C is discontinued.

Required: What would be the effect on the company's overall net operating income if product S38C were dropped?

Reference no: EM131824877

Questions Cloud

Identify the types of workplace violence : Discuss the extent of violence in the workplace and various factors that make certain workplaces potentially high risk/hazardous for violence.
Summarize the steps in creating a solid chain of custody : Assess the role and function the chain of custody plays in an investigative report.Summarize the steps in creating a solid chain of custody.
Joint and conditional probabilities : Joint and conditional probabilities. P(A) = 0.3, P(B) = 0.7
Discuss the factors that would support this statement : A successful marriage is a key variable in a person's ability to "mature out of crime." Discuss the factors that would support this statement.
What the effect on the company overall net operating income : The management of Thermo Corporation is considering dropping product S38C. What would be the effect on the company's overall net operating income
Explain methods which may be used to identify hot spots : Provide an explanation on each of these methods and which one you think is most effective and why.
Examine the events which make up a problem : Identify and explain the three stages crime analysts may use to examine the events which make up a problem.
Discuss the benefits police officers and investigators reap : Discuss (3) benefits police officers and investigators reap by adhering to the rules of narrative writing as described by the textbook author.
What is the net present value of the investment : For tax purposes, the entire initial investment will be depreciated by MACRS over 5 years. What is the net present value of the investment

Reviews

Write a Review

Accounting Basics Questions & Answers

  On january 25 coot company has 430000 deposited with a

on january 25 coot company has 430000 deposited with a local bank. on january 27 the company writes and mails checks of

  Adjusting journal entries-closing journal entries

The Blitz Corporation has a December 31 year end. The following events occurred during Blitz Corporation's first year of operations.

  Explain the international network theory explanation of fdi

Where to Invest. The decision about where to invest abroad is influenced by behavioral factors. Explain the behavioral approach to FDI.

  Describe relevant professional standards

Describe relevant professional standards

  In calculating the cost of merchandise sold does each of

1. what distinguishes a merchandising business from a service business?2. can a business earn a gross profit but incur

  Compute its return on equity

Starbucks reports net income for 2015 of $2,880.4 million. Compute its return on equity for 2015

  Compute the NPV of investing in the CIM

Suppose that Maria assumes that production and sales would continue for the next 6 years as they are expected in 2011 in the absence of investment in the CIM.

  Discuss about the shareholder of edgecombe corporation

Tina is the only shareholder of Edgecombe Corporation. Tina's stock basis is $100,000. She materially participates in the business and receives an annual.

  What decision must be made by the company

What decision must be made by the company, What are the alternative solutions

  Calculate gross profit and the rate of return

Total production overhead $5,017,500. Using the old plant-wide rate calculate gross profit and the rate of return on the two products

  Determining financial statement effects of transactions

determining financial statement effects of transactions involving notes payable many businesses borrow money during

  Discuss the balance sheet for december of the current

Show how the lessor would disclose this lease on the face of the balance sheet for December 31 of the current year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd