If 26469 in fixed costs will be eliminated by dropping the

Assignment Help Accounting Basics

Reference no: EM13588782

Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:

	Total	Cups	Pitchers
Sales revenue	$460,000	$310,000	$150,000
Variable expenses	355,000	235,000	120,000
Contribution margin	105,000	75,000	30,000
Fixed expenses	76,000	38,000	38,000
Operating income (loss)	$29,000	$37,000	$(8,000)

If $26469 in fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected? If income drops, use a negative sign in front of the number.

Reference no: EM13588782

Questions Cloud

Master grill sells free-standing gas grills plus : master grill sells free-standing gas grills plus installation to a customers gas line for a total price of 700. the

Under the new standard should the march 1 2014 agreement be : on february 1 2014 coconut entered into an arrangement with buffett worldwide inc. buffett a restaurant servicer to

Allocate the service department costs to the user : james inc. is a computer software consulting company. its three major functional areas are computer programming

The production department has been investigating possible : the production department has been investigating possible ways to trim total production costs. one possibility

If 26469 in fixed costs will be eliminated by dropping the : pottery unlimited has two product lines cups and pitchers. income statement data for the most recent year

Erickson company has offered to sell 5000 units of the same : spahr company produces a part that is used in the manufacture of one of its products. the unit manufacturing costs of

Assume that the company produces and sells 86000 units : assume that the company produces and sells 86000 units during the year at the selling price of 7.81 per unit. prepare a

A company operates in a competitive marketplace they look : a company operates in a competitive marketplace. they look to the market to determine their selling price. it looks

Mink manufacturing is unsure of whether to sell its product : mink manufacturing is unsure of whether to sell its product assembled or unassembled. the unit cost of the unassembled

User Account

All Pages