What will happen to total profits

Assignment Help Managerial Accounting
Reference no: EM132979078

Question - The following data is for Archery Unlimited, a maker of bows used by archery enthusiasts. All fixed costs are unavoidable regardless of the products offered, and Archery sells all the products it produces each year.

 

Beginner

Intermediate

Advanced

Unit Selling price

$40

$200

$400

Unit variable cost

$35

$80

$120

Total fixed cost

$60,000

$200,000

$245,000

Annual volume

7,000

4,000

3,000

Required -

(1) Perform differential analysis to determine what will happen to total profits if the company drops the Beginner product.

(2) Based on the analysis, what would be your recommendation to management regarding dropping of the Beginner product?

Reference no: EM132979078

Questions Cloud

Advantages-disadvantages of using scientific reasoning : Assess the advantages & disadvantages of using scientific reasoning in your decisions
What issues could expect to encounter : Imagine you are an analyst reviewing, What issues/limitations could you expect to encounter and how would you handle those issues/limitations in your analysis?
What was his dollar profit or loss : Sam bought a share in stock for $12 that paid a dividend of $0.25 and sold the stock one year later for $8.5. What was his dollar profit or loss
Draw the stages of mitosis in whitefish : Include the following labels on the drawing of each stage: Nuclear membrane, chromosomes, spindle, metaphase plate, aster, cleavage furrow.
What will happen to total profits : Perform differential analysis to determine what will happen to total profits if the company drops the Beginner product
Make analysis of two cars assuming are mutually exclusive : A sports car with a cost of $150,000. Make analysis of the two cars assuming they are mutually exclusive and can be repeated indefinitely.
What is a nuclear splice mrna variant : What is a "nuclear splice mRNA variant"
Concentration of the unknown protein solution : What is the concentration of the unknown protein solution. Write your answer up to 3 decimal places.
What position of dna record does the protein coding region : At what position of the DNA record does the protein coding region start for the alpha isoform?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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