Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Top managers of Advanced Data Manufacturing are alarmed by their operating losses. They are considering dropping the desktop product line. The company accountants have prepared the following analysis to help make this decision.
Advanced Data Manufacturing
Income Statement
For the Year Ended December 31, 2022
Total
Laptop
Desktop
Sales Revenue
$930,000
$575,000
$355,000
Variable Costs
507,000
267,000
240,000
Contribution Margin
423,000
308,000
115,000
Fixed Costs:
Manufacturing
375,000
225,000
150,000
Selling and Administrative
62,000
45,000
17,000
Total Fixed Costs
437,000
270,000
167,000
Operating Income (Loss)
$(14,000)
$38,000
$(52,000)
If the company stops selling the desktop product line, the company will be able to avoid 80% of the fixed manufacturing costs and 100% of the fixed selling and administrative costs.
3. The management of Advanced Data Manufacturing is considering whether to drop a product line. So far, management has determined that the product has a negative contribution margin and that lost revenues are less than the total cost savings. In making the final decision, discuss five critical questions that the management of Advanced Data Manufacturing should consider?
Last year a printing company had total sales of $37,500. The total of its variable costs was $15,000, Draw a detailed break-even chart
Which function of management involves filling, and keeping filled, the positions in the organization structure?
The CEO has asked you to use the Scenario Manager to evaluate each scenario. financial staff of You Inc. to demonstrate a cash budget
Discuss the limitations of CVP analysis. Calculate the school's breakeven point in lessons, the margin of safety, and the monthly profit.
Compute Rockville's COGManufactured and Compute Rockville's income statement - Rockville adjusts all under- and overapplied to cost of goods sold
On 01 July 2012, ABC Ltd purchased a truck for a total cost of $132000 cash including GST. Calculate the annual depreciation using straight-line method
As companies move to computer controlled manufacturing systems, what happens to the mix of product costs (direct material, direct labor, and manufacturing overhead)?
What is the company's CM ratio? If quarterly sales decrease by 100,800 and there is no change in fixed expenses, what would the quarter's net operating income
Incurred $95,000 in expenses and dividends of $20,000 were paid. What was People First Consulting Pty Ltd's equity at the end of the period?
Demonstrate relevant variable cost variances for both direct materials and direct labor. Be sure to label each variance by name and denote each variance
Calculate the fixed cost for Period 2. The following past costs have been recorded at two activity levels for a large valuation corporation
Which are fundamental qualitative characteristics of financial reports? Faithful representation and Comparability./ Comparability and Understandability
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd