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BigorU [14]
3 years ago
11

Cullumber Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales

$306,000 $494,000 $200,000 Variable expenses 154,900 203,300 135,200 Contribution margin 151,100 290,700 64,800 Fixed expenses 119,964 224,736 93,700 Net income $31,136 $65,964 $(28,900) Fixed expenses consist of $294,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $79,500 (Shocker), and $34,900 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income. (a) Compute current net income for Cullumber Company. Net income $ (b) Compute net income by product line and in total for Cullumber Company if the company discontinues the Stunner product line. (Hint: Allocate the $294,000 common costs to the two remaining product lines based on their relative sales.) Tingler Net Income $ Shocker Net Income $ Total Net Income $ (c) Should Cullumber eliminate the Stunner product line? Why or why not? Net income would from $ to $ .

Business
1 answer:
swat323 years ago
3 0

Answer:

a) Net Income = 68200

b) Tingler net income= 8645

   Shocker net income=29655

   Total net income=38300

c) No, because net income would decrease from 68200 to 38300.

Explanation:

Find the attachment for explanation/solution.

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Three Torque Inc., a U.S.-based multinational company, allows its managers to make facilitating payments in host countries to ex
Goryan [66]

Answer:

Cultural Relativism

Explanation:

Cultural relativism basically implies that other people's values, norms and morals should be understood and respected, rather than judged, usually from the viewpoint of another culture, as the saying goes when in Rome, act like the Romans.

Therefore, Three Torque Inc. has demonstrated Cultural Relativism in deciding to respect the ethics of countries that prohibit facilitating payments.

6 0
3 years ago
Ferguson Company recognized $400 of estimated manufacturing overhead costs at the end of the month. How does this transaction af
nadezda [96]

Answer:

This leads to a reduction in net income

Explanation:

Manufacturing overheads refer to those costs which indirectly relate to a good's production. Examples of manufacturing overheads would include depreciation charged on equipments used for production, rent of the factory wherein production takes place.

The effect of recognition of $400 of estimated manufacturing overheads would be reduction in net income since their recognition raises the cost of production which reduces gross profit. Consequently this would reduce the net income.

8 0
3 years ago
A corporation deposits $20 million in a money market account for 1 year. What will be the differ- ence in the total amount accum
Ilya [14]

Answer:

Simple Interest=P*r*n= $20 million * 0.18 * 1=  $3.6 million

Therefore amount accumulated= $20 million + $3.6 million = $23.6 million

Amount accumulated through Compound Interest=P×(1+r)  ^t

 = $20 million( 1+0.18/12)^12= $23.912 million

Explanation:

Simple interest is based on the principal amount of a loan or deposit, while compound interest is based on the principal amount and the interest that accumulates on it in every period.

3 0
3 years ago
On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

8 0
3 years ago
Southern Industries uses job order costing. The following information was drawn from the Company’s monthly accounting reports: J
Vlad [161]

Answer:

The balance in the Work in Process inventory at the month end is $60

Explanation:

Work in Progress : It is a sum of direct material, direct labor and overhead expense. It shows how much percentage of work is left in the company. The work part left in the company is called work in progress.

For computing the Job 3 work in progress, the calculation part is shown below.

= Direct material + Direct labor + overhead expense

= $30 + $10 + 200% × 10

= $30 + $10 + $20

=$60

Hence, the balance in the Work in Process inventory at the month end is $60

8 0
3 years ago
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