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3 years ago

The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:

Business

1 answer:

Sonja [21]3 years ago

7 0

Answer:

Mufflers should be continued (Alternative 1)

Explanation:

Preparation of a differential analysis dated to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2).

DIFFERENTIAL ANALYSIS

Continued (Alternative 1); Discontinued (Alternative 2); Differential effect on income Alternative 2)

October 31

Revenue $45,000 $0 ($45,000)

Costs:

Variable cost of goods sold ($21,600) $0 $21,600

[$27,000*(1-20%)]

Variable selling and administrative expense

($17,500) $0 $17,500

[$25,000*(1-30%)]

Fixed income ($12,900) ($12,900) $0

[($27,000*20%)+($25,000*30%)]

Income(Loss) ($7,000) ($12,900) ($5,900)

Based on the above Differential Analysis MUFFLERS SHOULD BE CONTINUED reason been that the income will decrease by $5,900 if Mufflers discontinued.

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3 years ago

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3 years ago

uestions 1. How has an understanding of consumer behavior helped Coppertone grow in the United States and around the globe? 2. D

aniked [119]

Explanation:

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3 years ago

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topjm [15]

Answer:

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Explanation:

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