Find out the incremental effect on profit of discontinuing

Assignment Help Financial Accounting

Reference no: EM13141533

Elliot’s Escargots sells commercial and home snail extraction tools and serving pieces. Currently, the snail extraction line of products takes up approximately 50 percent of the company’s retail floor space. The CEO of Elliot’s wants to decide if the company should continue offering snail extraction tools or focus only on serving pieces. If the snail extraction tools are dropped, salaries and other direct fixed costs can be avoided and serving piece sales would increase by 13 percent. Allocated fixed costs are assigned based on relative sales.

Prepare an incremental analysis in good form to find out the incremental effect on profit of discontinuing the snail extraction tool line.

Reference no: EM13141533

Questions Cloud

Why is the value you obtain for the fluke : Approximately 10% of the body of a free-living flatworm is occupied by reproductive tissue. Why is the value you obtain for the fluke so much different?

Determine the equations for afc : Determine the equations for AFC (average xed cost), AVC (average variable cost), ATC (average total cost), and MC (marginal cost). Graphically illustrate the relationships to one another. EMBA 504: Strategic Competitive Analysis

How many matches were there in the box originally : Karan bought a little box of midget matches, each one inch in length. He found that he could arrange them all in the form of a triangle whose area was just as many square inches as there were matches.

Give explanation to electric circuits : Explanation to "Electric circuits" question, The voltage across a load is v(t) = 260 sin (377t + 10 °) and the current through the load is i = 100 sin (377t + 10°). What is the RMS power?

Find out the incremental effect on profit of discontinuing : Prepare an incremental analysis in good form to find out the incremental effect on profit of discontinuing the snail extraction tool line.

Confidence interval for percentage of all adults in town : Of 144 adults selected randomly from one town, 31 of them smoke. Construct a 99% confidence interval for the percentage of all adults in the town who smoke.

Controlling interest in consolidates net income : On jan 1 2011 pearce com purchased an 80% interest in the capital stock of searl com for 2460000. at the time searl co had capital stock of 1500000 amd retaines earnings of 300000. Calculate the controlling interest in consolidates net income for 2..

Treatment on the bank reconciliation : If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to:

Explain short- term investments in the current asset section : Assume that the company classified the shares of treasury stock as short- term investments in the current asset section of its balance sheet. Is this appropriate? Explain.

User Account

All Pages