Appel Inc. has two product lines: phones and laptops. They are considering dropping the phone segment to improve their net operating income. Data for each per unit is as follows: Phones Laptops Revenue $530 $1099 Variable Costs $245 $430 Traceable Fixed Costs $300 $209 Allocated Fixed Costs $110 $130 Total Per Unit $(125) $330 Assume no allocated fixed costs are avoidable if the phone segment is dropped, but 100% of traceable fixed costs can be avoided. If Appel Inc. sells 1,824 units of phones and 555 units of laptops, how much will their net operating income increase/decrease if the phone segment is dropped? Pound vOur answor to the noarest dellar
Q: LABAN Company provided the following shareholders’ equity on December 31, 2020: Preference share cap...
A: Solution Working note Dividend get accumulated = (1000000*12%*2year) = 240000 / 10000 shares = P24 ...
Q: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accept...
A: Cost accounting is one that is widely used by the cost accountant and management to determine the co...
Q: Finch Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Finc...
A: The traditional method of overhead allocation is based on a allocation overhead rate. The allocation...
Q: Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increase...
A: Surplus or deficit in the income statement is the excess or shortfall of operating income of the org...
Q: The following cost data are available for ABC Co. for its first month of operations: ...
A: If overhead variance is material, the overapplied or underapplied overhead is adjusted proportionate...
Q: The following capital balances as of October 31 , 2016 for the Partnership of Wilma , Xelyn and Yska...
A: A partnership is a relationship between two or more persons who have agreed to share profits of the ...
Q: Q1)Fuzzy Monkey Technologies purchased as a long-term investment $80 million of 8% quoted bonds, dat...
A: Given information, Investment in bond=$80 million Cash paid=$66 million 1.Journal entry to recor...
Q: Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The f...
A: Solution Gross profit = sales - cogs. Note = Allowance related to spoilage has not been included in ...
Q: War Room Company manufactures fire extinguisher per the design and specification of its customers, a...
A: rework cost inclued in cost per unit if it's normal. If rework is abnormal then it will not charge t...
Q: The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Dru...
A: Contribution margin income statement as well as with all requirement calculated below.
Q: Larkspur Limited is a private company that follows ASPE. It is authorized to issue an unlimited numb...
A: Return on Equity - Return on Equity shows how much the company earned from the amount owed to stockh...
Q: On January 1, there were two jobs in process at Worship Printing Company. Details of the jobs are: ...
A: Cost of work in process ending inventory in January will be comprised of Job no A-40 as it is not fi...
Q: . Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Prese...
A: Solution The cash flow statement consists of three sections -cash flow from operatin...
Q: Problem 1. You were engaged for the first time to audit the FS of Bebeko Corporation for the period ...
A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three sub-p...
Q: Feal-Goode Inc. purchased a patent on a new drug. The patent cost $12,000. The patent has a life of ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Maris Bank has analyzed the accounts receivable of Anthony Software, Inc. The bank has chosen eight ...
A: Calculation of maximum amount lend and effective annual rate of anthony softwere are as follows.
Q: . Assume that 50,000 units are put into production for Job 101 and the total cost of production was ...
A: Management considers spoilage to be normal to the general production process and includes normal spo...
Q: A Initial Cost + Installation $25,000 $15,000 Uniform end of year maintenance $2,000 $4,000 Overhaul...
A: As per IAS 16, Property plant and Equipment Overhaul cost are to be capitalized to cost of asset wh...
Q: Ryan Roque Steel Company manufactures steel products. During the current period, an order for 30,000...
A: 1) Total order of steel products for job 143= 30000 units 2) Determination of amount of spoiled unit...
Q: Fair Value Hedge) On November 3, 2007, S Co. invested $200,000 in 4,000 shares of the common stock o...
A: Introduction Fair value hedge is a hedge of risk in change in fair value of asset or liability, acco...
Q: A binds himself to give P10,000 to B upon the death of the father of A. Is the obligation of A condi...
A: Obligation is a course of action taken by a person because of legal commitment.
Q: Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhe...
A: In the manufacturing or service industries, direct labor is labor that is assigned to a specific pro...
Q: Problem 2. In connection with your audit of Caloocan Corporation for the year ended December 31, 202...
A: Cash and Cash Equivalents These are the assets that are equivalent to cash or can be changed into ca...
Q: Determine the total service department costs (S1 + S2) allocated to P1?
A: Calculation of Cost of S2 allocated to P1: Cost of S2 allocated to P2 = P37500 Proportion of Cost of...
Q: xplain the general similarities AND differences between GAAP and IFRS.
A: Discussion of general similarity and difference between GAAP and IFRS are as follows
Q: Condensed financial data of Novak Company for 2020 and 2019 are presented below. NOVAK COMPANY COM...
A: NOVAK COMPANY Cash Flow Statement (Indirect Method) For the year ended December 31, 2020 Cash ...
Q: he balance sheet items of The Original Malt Sh yws at the close of business on September 30, 2 Accou...
A: (A) BALANCE SHEET AS ON SEPTEMBER 30,2001 Assets Amount Liabilities Amount Cash $7,400 Acc...
Q: The preclosing trial balance for the City of Hudson Golf Course Enterprise Fund is shown below. CITY...
A: Restricted net position represents by restricted assets less liabilities and deferred inflows of res...
Q: BES.1 (LO 1), AP The following are the components in determining cost of goods sold. Determine the m...
A: Cost of Goods Available for Sale=Beginning Inventory+PurchasesCost of Goods Sold=Cost of Goods Avail...
Q: Alain company prepared draft financial statements that showed the income before tax for the year end...
A: solution concept as per the relevant accounting standards event occurring after balance sheet date T...
Q: o types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced prot...
A: A performance report is a report that compares the actual costs with the budgeted. It further evalua...
Q: acos and Joseph are partners with capital balances of P1,600,000 and P2,400,000 respectively. They s...
A: LET'S UNDERSTAND THE BASICS Partnership is the the agreement between two or more partner to manage a...
Q: Happy Trails has the following information for its manufacturing: Direct Materials $16 Direct Labor...
A: The income statement represents the net income or net loss for the company. It is calculated by dedu...
Q: SONA Co. received an order for 1,000 units of item AY-14. Because of the order’s exacting specifica...
A: Sales order 1000 units Material P140 per unit Labour P200 per unit Factory overhead 80% of labour. ...
Q: The balance sheet data of Sweet Company at the end of 2020 and 2019 are shown below. 2020 ...
A: CFS stands for Cash Flow Statement which refers to the statement that shows the financial position o...
Q: War Room Company manufactures fire extinguisher per the design and specification of its customers, a...
A: Gross profit rate = Gross profit / Sales Selling price per unit = Cost per unit + Gross profit per u...
Q: What total amount should be recognized in profit or loss of Sushi Inc. for the year ended December 3...
A: Adjusting events are those events that arise after the end of reporting period but the conditions fo...
Q: 1. Prepare a General ledger for thr following information below: Use the pictures as reference ...
A: General ledgers Cash Date Account title Debit $ Date Account title Credit $ 01 Jan Bala...
Q: Using ABC, the total manufacturing costs for product Regular is:
A: Overhead cost per activity = Total overhead cost for the activity / No. of activity
Q: Prepare a multiple-step income statement.
A: Income statement are prepared in two forms which is single income statement and multiple income stat...
Q: ng Work in Process (75% complete) 14,500 units Costs of Beginning Work in Process: Materials,...
A: process costing search form of costing which applies where standard good are purchase and production...
Q: 8.Determine when each of the following must deposit its Form 941 tax liabilities. Quikstep, a month...
A: 1.Quikstep, a monthly depositor, pays employees on Friday. Its 941 tax liability for the April 17, 2...
Q: 3. Vaughn Corporation had the following activities in 2020. 1. Payment of accounts payable $832...
A: Cash flow statement depicts the total cash flows (inflows and outflows) for a given period. It also ...
Q: Lido Corp. has a commissary that supplies food and other products to its franchisees. It has two ser...
A: Direct Method: Under direct method, Service departments’ costs are allocated to Operating Department...
Q: system. In March 2022, it finished 10,000 pieces for a customer at a cost of P50.00 per unit for di...
A: in costing the job order costing takes into consideration the cost and revenue that are associated b...
Q: Rancho Cucamonga Inc. established the following direct materials and direct labor standards for its ...
A: Formulae Used: Direct materials quantity variance=(Standard Price×Standard Quantity)-Standard Price×...
Q: Which of the following froms of new partner admission will nt result in a change in the partnership ...
A: Admission of New Partner If new partner are admitted into the business which can be opted for bring ...
Q: Rancho Cucamonga Inc. established the following direct materials and direct labor standards for its ...
A: Direct labor rate variance = [Actual rate/price ×Actual hours worked (quantity)] -[ Standard rate/pr...
Q: Company cell phone bill received, but not paid, $80 what will be the general entry?
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Sheffield Company’s income statement for the year ended December 31, 2020, contained the following c...
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the so...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Villatech, Incorporated produces three models of tablet computers-the J-touch, B-touch, and L-touch. The company is considering eliminating the B-touch model because it has been incurring operating losses for the past few years. The J-touch and L-touch have impressive sales records and have the potential to grow in the future. Sale Revenue Less: Variable costs Contribution margin Less: Direct fixed costs Total B-touch $ 500,000 270,000 $ 230,000 105,000 $ 125,000 130,000 $ 2,000,000 1,040,000 $ 960,000 230,000 $ 730,000 520,000 Segment margin Less: Common fixed costs Net operating income (loss) $ (5,000) $ 210,000 The management expects that the elimination of the B-touch would increase sales of the L-touch by 40%. If Villatech eliminates the B-touch, its net operating income will Multiple Choice Increase by $32,000 increase Decrease by $125,000 Increase by $27,000 Increase by $5,000 J-touch $ 800,000 450,000 $ 350,000 70,000 $ 280,000 208,000 72,000 Decrease by $152,000 L-touch $…Mallorys Video Supply has changed its focus tremendously and as a result has dropped the selling price of DVD players from $45 to $38. Some units in the work-in-process inventory have costs of $30 per unit associated with them, but Mallory can only sell these units in their current state for $22 each. Otherwise, it will cost Mallory $11 per unit to rework these units so that they can be sold for $38 each. How much is the financial impact if the units are processed further? A. $5 per unit profit 8. $16 per unit profit C. $3 per unit loss D. $12 per unit lossCesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A S100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48,000 42,000 18,000 9,000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 S(1,700) increase by $18,000 O increase by ST15,000 () increase by $36,000 increase by $24,000 increase by $42,000 )
- Cesar Company has three product lines: A, B and C. The information given below is available. Assume Cesar Company drops Product C. Cesar Company then doubles the production and sales of Product B without ?increasing fixed costs. What will happen to operating income Product B Product C Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6,000 $9.000 $90,000 48,000 42,000 18,000 9,000 $15.000 $44,000 35,000 9,000 3,000 7,700 S(1,700) increase by $42,000 O increase by $18,000 increase by $36,000 increase by $15,000 ) increase by $24,000Pepper Industries has three product lines, A, B, and C. The following information is available: A B C Sales R60 000 R90 000 R24 000 Variable costs R36 000 R48 000 R15 000 Contribution margin R24 000 R42 000 R9 000 Fixed costs: Avoidable 9 000 18 000 6 000 Unavoidable 6 000 9 000 5 400 Operating income R9 000 R15 000 R(2 400) Pepper Industries is thinking of dropping product line C because it is reporting a loss. Assuming Pepper drops line C and does not replace it, the operating income will : decrease by R3 000 increase by R2 400 increase by R3 000 decrease by R5 400Sprite company must decide on a make or buy decision. A supplier has offered to make the product at the same quality. Fixed marketing costs would be unaffected but variable marketing costs would be reduced by 30%. What is the maximum amount per unit that Sprite can pay the supplier without decreasing its operating income? P6.75 P9.75 P5.75 P5.05
- Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T-1 and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10 percent next year, but the firm's cost structure will remain the same. Sales Variable costs: Cost of goods sold Selling & administrative Contribution margin es Fixed expenses: Fixed corporate costs Fixed selling and administrative Total fixed expenses Operating income Required: T-1 $ 200,000 70,000 20,000 $ 110,000 58,700 14,300 $ 73,000 T-2 $ 260,000 130,000 50,000 $ 80,000…Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T-1 and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10 percent next year, but the firm's cost structure will remain the same. Sales Variable costs: Cost of goods sold Selling & administrative Contribution margin Fixed expenses: Fixed corporate costs Fixed selling and administrative Total fixed expenses Operating income Required: T-1 $ 210,000 T-2 $ 268,000 72,000 22,500 $ 115,500 134,000 52,000 $ 82,000 77,000 23,000 62,000…Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T-1 and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10 percent next year, but the firm's cost structure will remain the same. Sales Variable costs: Cost of goods sold Selling & administrative Contribution margin Fixed expenses: Fixed corporate costs. Fixed selling and administrative Total fixed expenses Operating income Required: T-1 $ 200,000 70,000 20,000 $ 110,000 58,700 14,300 $ 73,000 T-2 $ 260,000 130,000 50,000 $ 80,000…
- Barbour Corporation, located in Buffalo, New York, is a retailer of high-tech products and is known for its excellent quality and innovation. Recently, the firm conducted a relevant cost analysis of one of its product lines that has only two products, T-1 and T-2. The sales for T-2 are decreasing and the purchase costs are increasing. The firm might drop T-2 and sell only T-1. Barbour allocates fixed costs to products on the basis of sales revenue. When the president of Barbour saw the income statements (see below), he agreed that T-2 should be dropped. If T-2 is dropped, sales of T-1 are expected to increase by 10 percent next year, but the firm's cost structure will remain the same. Sales. Variable costs: Cost of goods sold Selling & administrative Contribution margin Fixed expenses: Fixed corporate costs Fixed selling and administrative Total fixed expenses Operating income T-1 $ 200,000 1. 2. Required % increase in sales from T-1 3. Required % increase in sales from T-1 70,000…2. A computer maker is considering improving its product. It currently produces a desktop computer at a marginal cost of $249, and the computer sells for $289. The improved version of its product would have a new marginal cost of $289 and would be priced at $359. What volume hurdle does this manufacturer face?SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, andvariable costs are $36 per unit. How will the break-even point in units change in response to each of thefollowing independent changes in selling price per unit, variable cost per unit, or total fixed costs? Use Ifor increase and D for decrease. (It is not necessary to compute new break-even points.) Total fixed costs to $190,000