Prepare an analysis showing whether the company should

Reference no: EM13485008

Lion Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,230, variable expenses of $372,460, and fixed expenses of $141,670. Therefore, the gloves and mittens line had a net loss of $13,900. If Lion eliminates the line, $38,710 of fixed costs will remain.

Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the income, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter all cost amounts in columns "Continue" and "Eliminate" as positive amounts and subtract where necessary.)

			Net Income
	Continue	Eliminate	Increase (Decrease)
Sales	$	$	$
Variable costs
Contribution margin
Fixed costs
Net income	$	$	$

1.What is the elimination for:

fixed cost
net income

2.What is the net income for all.

Reference no: EM13485008

Questions Cloud

If windemere legal has an equity multiplier of 160 total : if windemere legal has an equity multiplier of 1.60 total asset turnover of 1.32 and a profit margin of 8 percent what

If the crash davis driving school has a 142 percent roe and : if the crash davis driving school has a 14.2 percent roe and a 25 percent payout ratio what is its sustainable growth

Anderson inc has 50000000 debt at 10 per year sale of : anderson inc has 50000000 debt at 10 per year sale of 10000000 a tax rate of 40 and a net profit margin of 6 what is

Nowak corporation produced 60000 units and sold 50000 for : nowak corporation produced 60000 units and sold 50000 for 10 per unit. variable manufacturing costs included d.

Prepare an analysis showing whether the company should : lion corporation manufactures several types of accessories. for the year the gloves and mittens line had sales of

Kate eden received a graduation present of 2000 that she : kate eden received a graduation present of 2000 that she is planning on investing in a mutual fund that earns 8.5

Grossman enterprises has an equity multiplier of 26 times : grossman enterprises has an equity multiplier of 2.6 times total assets of 2312000 an roe of 14.8 percent and a total

Fyre inc has sales of 625000 costs of 260000 depreciation : fyre inc. has sales of 625000 costs of 260000 depreciation expense of 79000 interest expense of 43000 and a tax rate of

Kaehler enterprises earns 5 on an investment that pays : kaehler enterprises earns 5 on an investment that pays back 80000 at the end of each of the next 6 years. what is the

User Account

All Pages