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GaryK [48]
3 years ago
10

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be

low:Sales $939,000Variable expenses $413,500Fixed manufacturing expenses $525,500Fixed selling and administrative expenses $353,000All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $215,500 of the fixed manufacturing expenses and $126,500 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued.What would be the effect on the company's overall net operating income if product V41B were dropped?
Business
1 answer:
topjm [15]3 years ago
8 0

Answer:

It would be a differential loss of 174,500

Explanation:

Continue Or discontinued  

                       Continued    Discontinued Differential

Sales                     930,000            -                   (930,000)

Variable                    (413,500)           -                     413,500

Tracable Fixed Cost (342,000)           -                    342,000

Allocate cost           (536,500)      (536,500)               -  

Result                   (362,000)      (536,500)       (174,500)

If discountinued, sales, variable cost and tracable fixed cost are zero

<u>Tracable cost</u>

215,500 + 126,500

<u>Allocate cost</u>

total fixed cost - tracable cost

(525,500 + 353,000)   - 342,000

Once we got the numbers we calculate the diffferential income/loss

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Income statement under absorption costing and variable costing
Len [333]

Answer:

unitary product cost= $102

Explanation:

Giving the following information:

Manufacturing costs Direct materials per unit $60

Direct labor per unit $22

Variable overhead per unit $8

Fixed overhead for the year $528,000

Units produced= 44,000

The absorption costing method includes all costs related to production, both fixed and variable<u>. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>

Fi<u>rst, we need to calculate the unitary fixed overhead:</u>

Unitary fixed overhead= 528,000/44,000= $12

<u>Now, the unitary product cost:</u>

unitary product cost= 60 + 22 + 8 + 12

unitary product cost= $102

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Answer and Explanation:

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4 0
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3 0
2 years ago
The term ____ refers to tangible choices such as - in the case of a new venture - investing in research and development for new
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3 years ago
Suppose you earned a $275,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each
olga nikolaevna [1]

Answer:

withdraw = 28532.45

so correct option is  a. $28,532

Explanation:

given data

earned = $275,000 bonus

interest rate = 8.25% per year

time = 20 year

to find out

How much could you withdraw at the end of each of the next 20 years

solution

first we find here Cumulative discount factor that is express as

Cumulative discount factor = \frac{(1-(1+r)^{-t}}{r}   .............1

put here value r is rate and t is time

Cumulative discount factor = \frac{(1-(1+0.0825)^{-20}}{0.0825}

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so here

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put here value we get

withdraw = \frac{275000}{9.638148}

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so correct option is  a. $28,532

3 0
3 years ago
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