User Account

All Pages

Should the product be dropped

Assignment Help Financial Accounting
Reference no: EM13509935

The management of Thews Corporation is considering dropping product E28I. Data from the company's accounting system appear below:

Sales $471,000
Variable expenses $212,000
Fixed manufacturing expenses $163,000
Fixed selling and administrative expenses $138,000
All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $83,000 of the fixed manufacturing expenses and $63,000 of the fixed selling and administrative expenses are avoidable if product E28I is discontinued.

Required:

a.What is the net operating income (loss) earned by product E28I according to the company's accounting system?

b.What would be the effect on the company's overall net operating income of dropping product E28I?

The net operating income would increase or decrease by how much $

b-2. Should the product be dropped?

Reference no: EM13509935

Questions Cloud

Do we have free will : What the answers to the questions are. I read "Do we have free will?" by Patricia Churchland
Sports and what sociology offers : Why do so many people participate in sports, either as fans, players, or as a business? What do sports answer in terms of human needs? How can sports be explained from a sociological point of view?
Determine the recoil speed of the man and rifle : A rifle with a weight of 30 N fires a 5.0-g bullet with a speed of 300 m/s. If a 700-N man holds the rifle firmly against his shoulder, find the recoil speed of the man and rifle
Compute cohens d to measure size of the difference : What happens to the boundaries for the critical region - what happens to the probability of a Type 1error
Should the product be dropped : What is the net operating income (loss) earned by product E28I according to the company's accounting system?
Research in accounting to determine if it is family friendly : It is argued that our workplaces are becoming increasingly family friendly. There are a number of ways this is happening. My assignment is to research in accounting to determine if it is family friendly and how important it is.
Compute the cars speed after the loading is completed : An open train car, with a mass of 2030 kg, coasts along a horizontal track at the speed 2.45 m/s. What is the car\'s speed after the loading is completed
Calculate its final speed the moment after the collision : A Dodge car of mass 1103 kg traveling to the right at 22.40 m/s collides head-on with a Ford of mass 1258 kg traveling at the same speed but in the opposite direction. Calculate its final speed the moment after the collision
Why rape victims fail to report their victimization : Which of the following is not a reason why rape victims fail to report their victimization? Ron Classen sees crime primarily as

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is carrying value of the note at the end of the second

Mantle Mfg. Co. issued a seven-year, non-interest bearing note with a face value of $800,000. Mantle received $361,900, resulting in an effective 12% interest rate. What is carrying value of the note at the end of the second year?

  Abc organization unadjusted trial balance as of 31 december

abc organization unadjusted trial balance as of 31 december 2012account codes dr cr cash 10789furniture and fixtures

  What was its 2010 net income

If Soule Company had net income of $585,000 in 2011 and it experienced a 30% increase in net income over 2010, what was its 2010 net income?

  What basis of accounting do enterprise

What basis of accounting do enterprise and internal service funds use and Which of the following is  not  a GASB-required statement for proprietary fun

  Evaluate the income statement

Evaluate the Income Statement

  Evaluate the unit product cost for the month

Evaluate the unit product cost for the month under variable costing and What is the unit product cost for the month under absorption costing?

  Problemuse the following selected data from business

problemuse the following selected data from business solutions income statement for the three months ended march 31

  Finding the equivalent units for materials and

finding the equivalent units for materials and conversion.bell computers ltd. located in liverpool england assembles a

  Question 1on 1st january 2008 abc company borrowed 200000

question 1on 1st january 2008 abc company borrowed 200000 from the bank. the loan is a 10-year note payable that needs

  Evaluate bakery''s total required production

Evaluate the bakery's total required production in units of baked goods for the entire three months period ending 9/30.

  Case study - specific environmental problem

Case study - Health rates as top social issue- Health has taken over from crime as the most important social issue seen to be facing Australia, figures showed yesterday.

  Balance sheetprofit and losscurrent assetscash and cash

balance sheetprofit and losscurrent assetscash and cash equavents 270trade receivables debtors 711sales

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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