Based on the cost data should product be discontinued

Assignment Help Financial Accounting
Reference no: EM131832429

Nchiru Limited produces three products X, Y and Z which the following operating statement has been produced.

X (Shs.) Y (Shs.) Z (Shs. Sales 116,000 125,000 122,500 Total Costs 118,000 119,000 117,000 Net Profit / Loss (2,000) 6,000 5,500

The total costs comprise two-thirds variable and one-third fixed. The directors consider that as product X shows a loss it should be discontinued.

Required:

Based on the above cost data should product X be discontinued.

Reference no: EM131832429

Questions Cloud

What is the effective annual cost to your firm : What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 35??
Define model proposed by the commission an effective model : The Center for Strategic and International Studies (CSIS) Commission Report, Securing Cyberspace for the 44th Presidency.
Choose differently if you had access to the internet : Might you choose differently if you had access to the Internet? Might you choose differently if these two choices were in your neighborhood?
What is the main disadvantage of a cut through switch : What is the main disadvantage of a cut through switch? Is there a way to solve the disadvantage of a cut-through switch without losing its advantages?
Based on the cost data should product be discontinued : Based on the above cost data should product X be discontinued - The directors consider that as product X shows a loss it should be discontinued
What is effective annual rate of warehousing? arrangement : What is the effective annual rate? (EAR) of this warehousing? arrangement?
Certain examination in advanced mathematics : Suppose that on a certain examination in advanced mathematics, students from university A achieve scores which are normally distributed with a mean
How is a hub like a switch and how are they different : How is a hub like a switch? How are they different? Are hubs and switches interchangeable? Explain.
Random without replacement from a class : Suppose that n students are selected at random without replacement from a class containing T students, of whom A are boys and T

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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