User Account

All Pages

How will operating income be affected

Assignment Help Accounting Basics
Reference no: EM131817239

Question - Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

Total Hiking Fashion

Sales revenue $480,000 $340,000 $140,000

Variable expenses 355,000 235,000 120,000

Contribution margin 125,000 105,000 20,000

Fixed expenses 76,000 38,000 38,000

Operating income (loss) $49,000 $67,000 $(18,000)

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by an additional 250%, how will operating income be affected?

Reference no: EM131817239

Questions Cloud

Increase in common stock has what impact on cash : If everything else is held constant, an increase in common stock has what impact on cash?
How much is the direct materials quantity variance : Direct materials standard (6 pounds per unit @ $0.55/lb.) $3.30 per finished good. How much is the direct materials quantity variance
Find the ear in each of the cases : Find the EAR in each of the following cases.
What is the corporate valuation of the company : What is the corporate valuation of the company Burt's Bees?
How will operating income be affected : Boots Plus has two product lines: Hiking boots and Fashion boots. How will operating income be affected
What is the current ratio after the payment of the dividend : A company has current assets of $589,000 and current liabilities of $263,000. What is the current ratio after the payment of the dividend
What are the overall financial implications : Would a stock issue be an option at the decline phase of a company's life cycle? What are the overall financial implications if stocks are issued at this phase
When do you receive your net profit on these two transaction : What is your net profit on these two transactions? When do you receive your net profit on these two transactions?
How long will it take to reach you goal : If your salary increases at an average annual rate of 9.09 percent, how long will it take to reach you goal?

Reviews

Write a Review

Accounting Basics Questions & Answers

  A person deposits 2485 at the beginning of each semiannual

a person deposits 2485 at the beginning of each semiannual period for 9 years into an account paying 5 compounded

  Complete the balance sheet and sales information

Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data.

  Is the machine an acceptable investment

edward company's required rate of return is 15%. the company can purchase a new machine at cost 40,350/. the new machine would generate cash inflows of 15,000 per year and have a four-year life with no salvage value. compute the machine's net pres..

  According to the companys accounting systemcv41b include

the management of kabanuck corporation is considering dropping product v41b. data from the companys accounting system

  On june 1 the cash account balance was 96750 during june

on june 1 the cash account balance was 96750. during june cash receipts totaled 305000 and the june 30 balance was

  Discuss the profit from the non-controlling interest

Determine if the process permanently eliminates the profit from the non-controlling interest or merely shifts the profit

  Journal entries required from the issuance of the note

Prepare the journal entries required from the issuance of the note until its maturity on September 30, 2015, assuming that no entries are made other than at the end of the accounting period, when interest is payable, and when the note reaches its mat..

  Substantial profit on the sale

David has now discovered that Caroline has made a substantial profit on the sale of her house and is about to depart on a round-the-world holiday.

  Starting elementary school intervention plans

Alexander Morris is a young boy ready to start the first grade at his local School. The first grade teacher is Mrs. Charles. Alexander is like other young boys in that he likes to play and he always seems happy. In this respect school will be n..

  In this step the cost of the units transferred out of the

in this step the cost of the units transferred out of the current process to finished goods is computed by using the

  Prepare the entries on petro co.

Prepare the entries on Petro Co.'s books to record the sale and related collection. (Omit cost of goods sold entries.)

  Value of the intangible assets

Are there times when the values of the tangible assets are actually less than the value of the intangible assets, such as Goodwill?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd