User Account

All Pages

What would be the impact on Sunland overall operating income

Assignment Help Managerial Accounting
Reference no: EM133066927

Question - Sunland Manufacturing has manufacturing facilities in several locations. One of Sunland's facilities has been showing losses over several quarters, and management is considering closing the facility. If the facility is closed, only two part-time employees will be retained by Sunland. The annual wage of each part-time worker is $15200. This particular location has been in operation for many years. As a result, the manufacturing equipment has no resale value. Following is the most recent income statement for the facility:

Sales $3658000

Less: Variable expenses 2560000

Contribution margin 1098000

Less: Fixed expenses Wages 684800

Insurance 177600

Depreciation 294800

Advertising 22800

Operating income $(82000)

Required - What would be the impact on Sunland's overall operating income if the manufacturing facility is eliminated?

a. Increase by $325200 per year.

b. Decrease by $243200 per year.

c. Decrease by $228000 per year.

d. Increase by $82000 per year.

Reference no: EM133066927

Questions Cloud

Autoedge management as an economic analyst : Two popular South Korean car manufacturing companies that produce for the U.S. market provide their union workers with above-average pay and benefits.
How much does this financial institution gain : Pinder Ltd currently has 5 million shares outstanding that are trading at $18 per share. How much does this financial institution gain from this placement
Project management delivery and methodology : Determine the readiness for a change from the current state of project management delivery and methodology used to more of an agile,
Dependent variable-hours of work coefficient t statistic : You have data on the working hours of a sample of working wives of employed husbands and run the following regression by Ordinary Least Squares. After tax wage
What would be the impact on Sunland overall operating income : The annual wage of each part-time worker is $15200. What would be the impact on Sunland's overall operating income if the manufacturing facility is eliminated
Statewide goal and national goal : Expanding broadband in southeast Ohio and greater Appalachia is both a statewide goal and a national goal.
Link-state routing and distance-vector routing : Compare and contrast Static Routing, Link-State Routing, and Distance-Vector Routing.
How to get rid of the negative impact of social media : How to get rid of the negative impact of social media and google views on sales. Do a capstone project on this subject.
What would the new breakeven point in pesos have been : Levi's Company has revenues of P500,000, variable costs of P300,000, and pretax profit of P150,000. What would the new breakeven point in pesos have been

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Preparation of master budgets in manufacturing company

Explain with reasons the steps that should normally be taken in the preparation of master budgets in a manufacturing company

  Discuss the importance of identifying the cost drivers

MA512 Management Accounting Assignment - Report & literature review. Discuss the importance of identifying the cost drivers and compare cost drivers

  Calculate the unit sales needed to attain a target profit

Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. Calculate the unit sales needed

  What is the cost of marginal bad debts under proposed plan

The variable cost per unit is P3,060. The firms required return on investment is 20 percent. What is the cost of marginal bad debts under the proposed plan?

  What is the capital gain yield on Warren Corporation stock

Warren Corporation's stock currently sells for $35 per share. What is the capital gain yield on Warren Corporation's stock? What is its required rate of return

  Create a contribution income statement for October

BC Supply produced and sold 10,000 cards during October. There were no beginning or ending inventories. Create a contribution income statement for October

  Calculate the break-even point in dollar sales

Calculate the break-even point in dollar sales for 2018 assuming an additional $20,000 selling expense will be spent in order to achieve sales targets for 2018

  Nbspiguana inc manufactures bamboo picture frames that sell

nbspiguana inc. manufactures bamboo picture frames that sell for 22 each. each frame requires 4 linear feet of bamboo

  Calculate the internal rate of return for each product

Lou Barlow, a divisional manager for Sage Company has an opportunity to manufacture,Calculate the internal rate of return for each product.

  Show how each of the amounts should be converted

Show how each of the amounts mentioned above should be converted to an after-tax amount. The company's tax rate is 30 percent.

  Prepare a cash budget for June

Assume that borrowing occurs at the beginning of the month and repayments occur at the end of the month. Prepare a cash budget for June

  Cruz company uses lifo for inventory costing and reports

Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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