What would be effect on the company overall net operating

Assignment Help Financial Accounting

Reference no: EM13140970

Tjelmeland Corporation is considering dropping product S85U. Data from the company's accounting system appear below:

All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $55,000 of the fixed manufacturing expenses and $71,000 of the fixed selling and administrative expenses are avoidable if product S85U is discontinued.

Required:

i. According to the company's accounting system, what is the net operating income earned by product S85U? Show your work!

ii. What would be the effect on the company's overall net operating income of dropping product S85U? Should the product be dropped? Show your work

Reference no: EM13140970

Questions Cloud

Write a five paragraph essay taking a personal stand on cybe : write a five paragraph essay taking a personal stand on cyberbullying

Define write-back write allocate : How do we deal with a L1 cache that is Write-back Write allocate, and the L2 cache, which is a Write-through Write no-allocate?

Which cranial nerve is probably being compressed : A tumor is pressing on one cranial nerve. The most significant presenting sign is unequal pupils. Which cranial nerve is probably being compressed?

Explain your context : Explain your context, sector and current level of experience and provide the name of the curriculum framework (and its weblink) most relevant to your context (approx. 50 words -).

What would be effect on the company overall net operating : What would be effect on the company's overall net operating income of dropping product S85U? Should the product be dropped?

What mass of hg will form : Joseph Priestley discovered oxygen in the eighteenth century by using heat to decompose mercury(II) oxide: 2 HgO(s) + heat --> 2 Hg(s) + O2(g)

A batch process which involves filling a tank with liquid : A batch process which involves filling a tank with liquid, mixing the liquid and draining the tank, is automated with a PLC. The specific sequence of events is as follows

Realizing the gross profit : In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed.In 2010, Lake would recognize realized gross profit of:

Determine amount of interest to be capitalized : Determine amount of interest to be capitalized in 2010 in relation to the construction of the building. Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2010.

User Account

All Pages