Solution-What will be total net income if the line is

What will be total net income if the line is dropped

Assignment Help Managerial Accounting

Reference no: EM132470588

Problem - Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Assume none of the fixed expenses for the hard rubber line are avoidable.

	Wood	Aluminum	Hard Rubber	Total
Sales	$500,000	$200,000	$65,000	$765,000
Variable Expenses	325,000	140,000	58,000	523,000
Contribution Margin	175,000	60,000	7,000	242,000
Fixed Expenses	75,000	35,000	22,000	132,000
Net Income (loss)	$100,000	$25,000	$(15,000)	$110,000

Required - What will be total net income if the line is dropped?

a. $125,000

b. $103,000

c. $105,000

d. $140,000

Reference no: EM132470588

Questions Cloud

Record the appropriate transactions in the general journal : Oct. 6 Sold a piece of equipment for $60,400 cash. The equipment was originally purchased for $52,600. Record the appropriate transactions in General Journal

Explain the perceived barriers to management accountants : Explain any FIVE (5) perceived barriers to management accountants' involvement in management accounting practices for sustainable development activities.

Compute the total amount to be reported by Larkspur : On the basis of this information, compute the total amount to be reported by Larkspur for intangible assets on its balance sheet at year-end

What is the balance in the retained earnings account : Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal places.)

What will be total net income if the line is dropped : Abel Company produces three versions of baseball bats: wood, aluminum, and hard rubber. What will be total net income if the line is dropped

Explore its main business functions and stakeholders : Choose one organisation (public, private or non-profit) from any sector or country and explore its main business functions and stakeholders using theory

Prepare a consolidated balance sheet for big lake bakeries : Prepare a consolidated balance sheet for big lake bakeries which owns 100% of marble falls orchards. The fair value of marble falls net fixed assets

Prepare the context dfd : Determine and Prepare the context DFD. Prepare the Level-0 DFD. Prepare the Systems Flowchart (not a Document or Program flowchart).

Record insurance used for the year : Record insurance used for the year Accrue interest for note payable. Assume a full month of interest for July.(6% annual interest on $10,000 loan from parents.)

User Account

All Pages

What will be total net income if the line is dropped

Reference no: EM132470588

Reference no: EM132470588

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT