What is the differential cost of discontinuing the product

Assignment Help Accounting Basics
Reference no: EM132717810

Problem - Johnston Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost of discontinuing the product?

a. $19,000

b. $15,000

c. $35,000

d. $39,000

Reference no: EM132717810

Questions Cloud

What is the opportunity cost : Hancock Inc. is considering spending $100,000 for a new grinding machine. This amount could be invested to yield a 12% return. What is the opportunity cost
Calculate the email campaign profitability : If 5,000 emails were sent, calculate the email campaign's profitability. What do you infer about the cost effectiveness of the campaign at the scale
What is the sunk cost : Madden Company is considering disposing of equipment that was originally purchased for $200,000. What is the sunk cost
Prepare the journal entries for lobstar ltd for years ending : At 1 July 2017, Lobstar Ltd acquired the following non-current assets: Equipment $100 000 Vehicles $80 000 They are in different classes of non-current assets.
What is the differential cost of discontinuing the product : The variable operating expenses related to the product total $4,000. What is the differential cost of discontinuing the product
Find how absorption costing differ from variable costing : Find How does absorption costing differ from variable costing? When will absorption-costing operating income exceed variable-costing operating income?
Calculate the amount of goodwill at the date of acquisition : On 1 July 2014 Padma Ltd acquires 25 per cent of the issued capital of Jamuna Ltd for a cash consideration of $360 000. At the date of acquisition.
What is the loss that should be recorded on early retirement : At December 31, 2020, the 10% bonds payable of Paisley Inc., what is the loss that should be recorded on the early retirement of the bonds?
Determine the most profitable product : Product A requires four testing hours, while Product B requires six testing hours. Determine the most profitable product

Reviews

Write a Review

Accounting Basics Questions & Answers

  On january 1 2014 tillit corporation changed its method of

on january 1 2014 tillit corporation changed its method of accounting for bad debts from the direct write-off method to

  An earthquake caused 113000 in property damage to one of

selected information about income statement accounts for the reed company is presented below the companys fiscal year

  What is the inventory turnover ratio

Assume a firm's inventory level of $13,500 represents 37 days' sales. What is the inventory turnover ratio? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

  Describe how the perpetual inventory system works what are

describe how the perpetual inventory system works. what are some advantages of using the perpetual inventory system? is

  Prepare the entry to record the receipt of the funds from

megan haak and kathy quandt borrowed 15000 on a 7-month 8 note from golden state bank to open their business mks coffee

  Which gross profit is the difference between

Which Gross profit is the difference between? The cost of merchandise purchased and the cost of merchandise sold./ Net sales and the cost of goods sold.

  Briefly describe the major purposes of Securities Act

Regulation of U.S. financial markets is the purpose of the Securities Act of 1933 and the Securities Act of 1934. Briefly describe major purposes of each Act

  Determine the future value at the end of august

Determine the future value at the end of August for the following cash flows using a periodic interest rate of 1% compounded monthly.

  Statement characterizing an operating lease

Which of the following statements characterizes an operating lease?

  Is jose carrying on a business

Jose used the excess to put a down payment on a new limousine., Is Jose carrying on a business, and if so, is the excess amount income

  The devon motor company produces motorcycles during april

the devon motor company produces motorcycles. during april the company purchased 8000 batteries at a cost of 10 per

  Four out of five doctors prefer freds aspirin thinking

four out of five doctors prefer freds aspirin. thinking about sampling and exhaustive categories what is wrong with

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!

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