Reference no: EM131792035
Problem
Tarmac Co., Inc., has prepared the following product-line income data:
|
|
Product
|
|
Total
|
A
|
B
|
C
|
|
Sales
|
$ 100,000
|
$ 50,000
|
$ 20,000
|
$ 30,000
|
|
Variable expenses
|
60,000
|
30,000
|
10,000
|
20,000
|
|
Contribution Margin
|
40,000
|
20,000
|
10,000
|
10,000
|
|
Fixed Expenses:
|
|
|
|
|
|
Rent
|
5,000
|
2,500
|
1,000
|
1,500
|
|
Depreciaiton
|
6,000
|
3,000
|
1,200
|
1,800
|
|
Utilities
|
4,000
|
2,000
|
500
|
1,500
|
|
Supervisor salaries
|
5,000
|
1,500
|
500
|
3,000
|
|
Maintenance
|
3,000
|
1,500
|
600
|
900
|
|
Administrative expenses
|
10,000
|
3,000
|
2,000
|
5,000
|
|
Total Fixed expenses
|
33,000
|
13,500
|
5,800
|
13,700
|
|
Net Operating Income
|
$ 7,000
|
$ 6,500
|
$ 4,200
|
$ (3,700)
|
The following additional information is available:
* The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped.
* The company's total depreciation would not be affected by dropping C.
* Eliminating Product C will reduce the monthly utility bill from $1,500 to $800.
* All supervisors' salaries are avoidable.
* If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000.
* Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000.
Required:
Prepare an analysis showing whether Product C should be eliminated.
Product C Relevent Cost
Variable Expense 20000
Factory Rent 1500
Utility 700(1500-800)
Maintenance 1000(3000-2000)
Admin 3000
Total 26200
Sales 30000
Total Savings =3800(3000-26200) As the relevant cost of product C is less than earning, the company should not eliminate product C.
|
Explain bg savage use of different influence tactics
: Explain BG savage’s use of different influence tactics with various people at various times throughout film. You may show no more than five different tactics.
|
|
Prepare journal entries to record the three dividend events
: Warm Ways reported net income of $9,250,000 for 2014, declared and paid the preferred stock cash dividend, and declared and paid a $0.25 per share cash dividend
|
|
Discuss the reason and the type of audit report
: The accounting records for cash sales of your client, Kits Bhd, are not adequate for audit purposes and you have been unable to obtain reasonable assurance
|
|
Prepare summary entries at january to record transactions
: Prepare summary entries at January 31 to record the current year's transactions pertaining to Job No. 92. What was the balance in Work in Progress Inventory
|
|
Prepare analysis showing whether product c should eliminated
: Tarmac Co., Inc., has prepared the following product-line income data. Prepare an analysis showing whether Product C should be eliminated.
|
|
Parts of the marketing planning process of this extra credit
: In previous parts of the marketing planning process of this extra credit you established that the market’s behavior was heterogeneous,
|
|
What number of shares should be used in computing eps
: Fountain Inc. has 5,000,000 shares of common stock outstanding on January 1, 2014. It issued an additional 1,000,000 shares of common stock on April 1, 2014.
|
|
How communication of the verbal message resulted
: How communication of the verbal message resulted in negative consequences. Explain how you might change the message to prevent the negative consequences.
|
|
Write application to fill an array with 50 random integers
: Fill an array with 50 random integers - loop through the array, displaying each value, and count the number of negative values
|