Calculate increase in company profits jymp product line

Assignment Help Financial Accounting
Reference no: EM13825444

Foto Company manufactures and sells a product called JYMP. Results from last year from the sale of JYMP appear below:

Sales revenue (8,000 JYMPs @ $120 each) .............. $960,000

Variable costs .......................................  640,000

Contribution margin ..................................  320,000

Fixed costs:

Salaries of line supervisors .........................  100,000

Advertising expense ..................................  160,000

Allocated general overhead ...........................  132,000

Net loss .............................................  <72,000>

Foto Company is considering eliminating the JYMP product line. The company has determined that if the JYMP product line is discontinued, the contribution margin of its other products will increase by $120,000.

Calculate the increase in company profits if the JYMP product line is discontinued. Do not use decimals or type the word increase after your answer.

Reference no: EM13825444

Questions Cloud

Contribution margin technique-compute the break-even point : In the month of March, Style Salon services 660 clients at an average price of $160. During the month, fixed costs were $21,700 and variable costs were 65% of sales. Determine the contribution margin in dollars, per unit, and as a ratio. Using the co..
Prepare the entry to record purchase of terrell galleries : Prepare the entry to record the purchase of Terrell Galleries on Graf's books
Article review upon police brutality : Read the following article and link and then, in your own words, write a two page review about the article titled: "Seattle WA police seem to have an ace in the hole in their effort to stop the DOJ from forcing them to stop committing civil rights..
Describe attribute minimization : Describe attribute minimization. Explain what would happen if you tried to validate a page containing instances of attribute minimization. Propose a solution to this problem.There are many reasons to validate your Web design. Select one of these reas..
Calculate increase in company profits jymp product line : Foto Company is considering eliminating the JYMP product line. The company has determined that if the JYMP product line is discontinued, the contribution margin of its other products will increase by $120,000. Calculate the increase in company profit..
Discuss the method used for inventory management : Discuss the method used for inventory management
Reducing the exchange attack surface : What are some advantages of implementing a host-based firewall on your Exchange Server?What is the procedure for disabling unnecessary services on your Exchange Server?What tools can be used to check and correct incorrect or insecure Exchange Server ..
Variable-fixed expenses-increase in advertising expenditures : Stratford Company distributes a lightweight lawn chair that sells for $80 per unit. Variable expenses are $40.00 per unit, and fixed expenses total $160,000 annually. Refer to the original data. Assume that the company sold 27,000 units last year. Th..
Have you ever copied things from one document to another : Have you ever copied things from one document to another or from Word to PowerPoint, or any variation like that? Do you find it useful

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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