What will he the effect of this increase on company profits

Assignment Help Accounting Basics
Reference no: EM131733619

Problem - The following information is for X Company's two products, A and B, last year:

 

Product A

Product B

Sales

$92,860

$85,700

Total variable costs

55,716

46,278

Total fixed costs

29,670

72,730

Profit

$7,474

$-33,308

Because of the reported loss for Product B, X Company is considering dropping lt. Further analysis reveals that $1980 of Product A's fixed costs and $27,340 of Product B's fixed costs are common costs that the company allocates to the two products.

If Company drops Product B, company profits will change by?

Assume that sales of Product A can be increased by $15,680 lf Product B is dropped. What will he the effect of this increase on company profits?

Reference no: EM131733619

Questions Cloud

Estimate the mean fico : How many adults must be randomly selected to estimate the mean FICO? (credit rating) score of working adults in a? country?
Prepare the adjusting journal entries : Barb has found the following adjusting entries that need to be made to the Unadjusted Trial Balance. Prepare the Adjusting Journal Entries
Which is not an example of an instrumental value : Which of the following is NOT an example of an instrumental value? Which of the following is not one of the "work setting" values specifically identified?
Which of the given frameworks is most popularly used : Which of the following frameworks of effective organizational change is most popularly used on a global scale? Compared to reactive change, proactive changes.
What will he the effect of this increase on company profits : Assume that sales of Product A can be increased by $15,680 lf Product B is dropped. What will he the effect of this increase on company profits
What are the null and alternate hypotheses : a. What are the null and alternate hypotheses? b. What is the test statistic to be used?
Determine the major impacts of risk that the team needs : Write a six page paper in which you: Determine the major impacts of risk that the team needs to understand for the project to be successful.
What is the probability of successes : Let X be the number of students that attend graduation. As we know, the distribution of X is a binomial probability distribution.
Compute the value of a customer : Assuming an annual discount rate of 8 percent, compute the value of a customer.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Distinguish between the pairs of terms

Problem: Distinguish between the following pairs of terms in not more than five lines for each pair. You can use examples to describe your answer.

  Calculate i ending inventory ii cost of goods sold iii

you have the following information for company xyz for themonth ended june 30 2007. company xyz uses a periodic method

  Complete an amortization table for this installment note

On November 1, 2009, Norwood borrows $700,000 cash from a bank by signing a five-year installment note bearing 7% interest.

  Prepare a budget using the activity-based approach

Prepare a budget using the activity-based approach for the costs of inspecting, processing, loading, and miscellaneous activities

  Determine the effect on the companys total net operating

ries corporation has received a request for a special order of 8000 units of product r34 for 34.60 each. the normal

  If direct labor-hours are considered as the only overhead

blitzer enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs.

  Compute the tepper cost recovery deductions

Compute Tepper's 2016 cost recovery deductions related to the assets listed (showing calculations for each asset)

  What are the benefits of pursuing borrowing money from

what are the benefits of pursuing borrowing money from banks or other lenders approach compared to the traditional

  Desmond drury and ty wilkins have decided to form a

desmond drury and ty wilkins have decided to form a partnership. they have agreed that drury is to invest 20000 and

  If revenue and cost relationships are not expected to

in 2013 x company had revenue of 198000 and incurred the following costsdirect materials37620direct labor all

  What amount should sandhill report

At December 31, 2017, Sandhill Inc. had a deferred tax asset of $33,000. What amount should Sandhill report as total 2018 income tax expense

  Pitt metal works had 87600 in net fixed assets at the

pitt metal works had 87600 in net fixed assets at the beginning of the year. during the year the company purchased

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