Frther investigation has revealed that 49000 of the fixed

Assignment Help Accounting Basics

Reference no: EM13597047

Product R19N has been considered a drag on profits at Buzzeo Corporation for some time and management is considering discontinuing the product altogether. Data from the company's accounting system appear below:

Sales $270,000
Virable Expenses 132,000
Fixed manufacturing expenses 95,000
Fixed selling and adminstartive expenes 65,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $49,000 of the fixed manufacturing expenses and $30,000 of the fixed selling and administrative expenses are avoidable if product R19N is discontinued. What would be the effect on the company's overall net operating income if product R19N were dropped?

Reference no: EM13597047

Questions Cloud

Kempler corporation processes sugar cane in batches the : kempler corporation processes sugar cane in batches. the company purchases a batch of sugar cane for 34 from farmers

After all of the account balances have been extended to : after all of the account balances have been extended to the balance sheet columns of the work sheet the totals of the

Manning company has the following items write-down of : manning company has the following items write-down of inventories 360000 loss on disposal of sports division 555000 and

The work sheet at the end of july has 5350 in the balance : the work sheet at the end of july has 5350 in the balance sheet credit column for accumulated depreciation. the work

Frther investigation has revealed that 49000 of the fixed : product r19n has been considered a drag on profits at buzzeo corporation for some time and management is considering

During 2012 lopez corporation disposed of pine division a : during 2012 lopez corporation disposed of pine division a major component of its business. lopez realized a gain of

The office space is used equally by nens sales and : the following items were among those that were reported on nona co.s income statement for the year ended december 31

Explain the dissolution of silver chloride in aqueous : explain the dissolution of silver chloride in aqueous ammonia and its reprecipitation in terms of ionic equilibria and

Firms hl and ll are identical except for their leverage : firms hl and ll are identical except for their leverage ratios and the interest rates they pay on debt. each has 28

User Account

All Pages