Please do not give solution in image format thanku Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $104,000 as shown below.Segment Income (Loss)SalesVariable costsContribution marginFixed costsIncome (loss)Multiple ChoiceIf the Windows division is dropped, all of its variable costs are avoidable, and $155,350 of its fixed costs are avoidable. The impact on Gion'soperating income from eliminating this business segment would be:$155,350 increase$19,550 decrease$20,350 increase$ 1,129,00020 250 darroaco994,000135,000239,000$ (104,000) Multiple ChoiceOO$155,350 increase$19,550 decrease$20,350 increase$20,350 decrease$155,350 decreasedidable. The imp

Avoidable fixed cost = $155,350 Loss of contribution margin = $135,000 Financial advantage…

Answered: egment Income (Loss) -osta on margin "…

Business

Accounting

egment Income (Loss) -osta on margin " (@ $ 1,129,000 994,000 135,000 239,000 $ (104,000) S

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Can yous show me what formulas and the calculations for the follwoing; 1) How did you get to the…

A: Cash flow statement is one of financial statements prepared at the end of accounting period. This…

Q: Handy Products signed a contract with Cooper Manufacturing to design, develop, and produce a…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Current assets for Clarke Inc. totalled $1,12 2.00, and the company uses the periodic the following…

A: Dividends do not affect current assets, but they decrease retained earnings, which is a part of…

Q: View Policies Current Attempt in Progress Assume Lessor Corporation wants to recover fair value,…

A: Leasing is an aggreement between lessee and lessor, where lessee uses asset of lessor in…

Q: Cullumber Corporation reported net sales of $160,000, cost of goods sold of $91,200, operating…

A: Net Sale = $160,000 Cost Of Goods Sold = $91,200 Operating Expenses = $35,900 Other Expenses =…

Q: Can you show me how to do this one? 14. Assume that ABC Company purchased factory equipment on…

A: Straight-line depreciation method is a process of depreciation that continuously reduces the cost of…

Q: Exercise 12-32 Segmented Income Statement; TV Cable Company (LO 12-5) Countywide Cable Services,…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Waldo is planning to start a clothing store helping big and tall men blend in with the crowd. Select…

A: Meaning of corporation- Corporation means a legal entity that is considered to be separate from its…

Q: Company J is preparing their budgeted income statement for the year. They anticipate that they will…

A: Budgets are the estimates or forecasts that are made for future period. Budgeting is the process of…

Q: Peak Corporation owns 75 percent of Summit Company's voting shares, acquired on March 21, 20X5, at…

A: A consolidated balance sheet is a document that shows the entire financial situation of a parent…

Q: 3. Analyze Estee Lauder's buybacks before and after COVID-19 (2015-2022) with specific data require:…

A: Estee Lauder has a strong reputation for innovation and quality and has won numerous awards and…

Q: The balance in the vehicles account in the ledger of Smeg Limited was R1 250 000 on 01 January 2023.…

A: Carrying value is calculated by adding the new vehicle cost in the balance of vehicle account and…

Q: While follwoing the intructions, can you fill up the board in the second picture?

A: A financial analysis method known as "horizontal analysis," often called "trend analysis," examines…

Q: Company L charges all operating expenses to credit. They pay 70% of their accounts payable in the…

A: Budget is the process of preparing estimates and forecasts for future period. There can be sales…

Q: Flounder Corp. has these accounts at December 31: Common Stock, $10 par, 5,000 shares issued,…

A: Stockholders' equity, also known as shareholders' or owners' equity, is a type of equity held by…

Q: Lastly, can you show me how to do this one? 22. In 2018, XYZ, Inc. sold 2,000 beds for $50 each.…

A: Estimated warranty liability is the amount of money that a company expects to spend to fulfill its…

Q: 3. A bank has risk-weighted assets or $408 million and the following sources of regulatory capital…

A: Risk-weighted assets are a measure of the amount of capital a bank needs to hold to cover its credit…

Q: Company K's monthly sales are 20% cash and 80% credit. Of the credit sales, 70% are received in the…

A: Cash receipt means the amount of money received by the entity during a particular period. It could…

Q: The contribution margin ratio of the Parts Department of Buffalo Valley Repair is 40 percent.…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Diaz Company issued bonds with a $87,000 face value on January 1, Year 1. The bonds had a 8 percent…

A: Due to the issuer's legal responsibility to pay back the bond's principal and interest, bonds are…

Q: If, as part of the accounting for a lease, the lessee debits an asset and credits a liability,…

A: Assets have debit balance while liabilities and equity have credit balance. A lease is a contractual…

Q: Bloom Company predicts it will incur fixed costs of $265,000 and earn income of $367,500 in the next…

A: Answer:- Formula:- 1, Total dollar sales = (Fixed cost + pretax income) / Contribution margin…

Q: Dividends [LO 11-3] On December 31, the stockholders' equity section of the balance sheet of R & B…

A: The dividend is declared to the shareholders from the retained earnings of the business. The stock…

Q: Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. Name…

A: 10% on $ 10,275 12% on ( $ 41,775 - $ 10,275) 22% on ( $ 67,300 - $ 41,775)

Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur…

A: Sales will be realized as follows: 20% in the month of sale; 60% in the following month and 20% in…

Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.…

A: Lets understand the basics. Management prepares budget in order to estimate future profit and loss…

Q: W h a t d i f f e r e n t a s p e c t s o f f i n a n c i a l m a r ke t s d o t h e…

A: Since you have posted multiple questions, as per the guidelines only the first question will be…

Q: Dill Shipyards operates a dry dock on the East Coast, where it builds and repairs ships. The…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Problem 10-11 (Algo) Direct Materials and Direct Labor Variances; Computations from Incomplete Data…

A: The variance is the difference between standard and actual production costs.the variance helps to…

Q: Waterway produces 5-foot USB cables. During the past year, the company purchased 215,000 feet of…

A: Direct material standard price for 6 feet of wire = $0.55 per foot Actual direct material used =…

Q: Olivet Devices sells two models of fitness devices. The budgeted price per unit for the wireless…

A: Variance arises when there is difference between actual costs and standard costs. The variance is…

Q: 1 Mauro Products distributes a single product a woven basket whose selling price is $13 per unit and…

A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Q: Date 1/1 1/2 1/5 1/7 1/8 1/9 1/13 1/15 1/18 1/19 1/25 1/26 1/29 1/30 Account Title Cash Rent Expense…

A: 1. T-Accounts - T-Accounts is a T-shaped ledger of an individual account. All the Journals recorded…

Q: Newton Labs leased chronometers from Brookline Instruments on January 1, 2024. Brookline Instruments…

A: Introduction:- This question is related to accounting and involves the calculation of appropriate…

Q: The shareholders’ equity of Tru Corporation includes $680,000 of $1 par common stock and $1,280,000…

A: The preferred dividend is paid before common stock dividend. The cumulative preference shareholders…

Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 5,100 shares of…

A: The dividend is declared from the retained earnings of the business. The cumulative preference…

Q: currently doing working papers for accounting class, have I got the accounts and values correct?…

A: Gross earnings include total amount earned by employees. After deducting various deductions and…

Q: What would the standards look like for both DL and variable-MOH if management reduces expected DL…

A: Bramble Motors (b) Total variable-MOH costs = 6600 DL hours * $8.10 = $53,460 Total products…

Q: Use the 2021 marginal tax rates

A: As per IRS 2021 standard deduction for single filer is $ 12,550. As per…

Q: Miller Corporation has $2,300,000 of bonds outstanding. The unamortized premium is $58,000. If the…

A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: Brief Exercise 19-4 (Algo) Stock options; forfeiture; financial statement effects [LO19-2] Inder its…

A: The stock option plan refers to when the company offers to provide an option for the employees and…

Q: In 2021, Erica's AGI was $141,000, and the total tax liability was $33,650. This year, Elon’s total…

A: Underpayment penalty refers to the penalty imposed by the Internal Revenue Service (IRS) on…

Q: b. Prepare an income statement according to the variable costing concept. Gallatin County Motors…

A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…

Q: Banc Corporation Trust is considering either a bank-wide overhead rate or department overhead rates…

A: The overhead rate is calculated as estimated indirect costs divided by the base activity. The…

Q: in on materials

A: To calculate the profit margin per hour on labor, the total revenue earned from labour will be…

Q: Spatula Galaxy has 3 departments: materials, manufacturing, and packaging. In a recent month the 3…

A: Indirect expenses, also known as indirect costs or operating expenses, are costs that are not…

Q: Under Lamar Company's job costing system, manufacturing overhead is applied to Work-in-Process…

A: Calculating a corporation's entire manufacturing expenses throughout a particular period of time…

Q: Exercise 10-14A (Algo) Straight-line amortization of a bond discount LO 10-4 Diaz Company issued…

A: The accounting equation states that the assets equal to the sum of liabilities and equity. The bonds…

Q: The following comparative information is available for Shamrock, Inc. for 2022. Sales revenue Cost…

A: Net income: It refers to the income earned by the business after deducting all the expenses incurred…

Q: Shadee’s budgeted income statement for the months of May and June

A: A budgeted income statement refers to the calculation of net income expected in the coming time. The…

Question

Please do not give solution in image format thanku

Gion Company is considering eliminating its Windows division, which reported a loss for the prior year of $104,000 as shown below.
Segment Income (Loss)
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
Multiple Choice
If the Windows division is dropped, all of its variable costs are avoidable, and $155,350 of its fixed costs are avoidable. The impact on Gion's
operating income from eliminating this business segment would be:
$155,350 increase
$19,550 decrease
$20,350 increase
$ 1,129,000
20 250 darroaco
994,000
135,000
239,000
$ (104,000)

Multiple Choice
O
O
$155,350 increase
$19,550 decrease
$20,350 increase
$20,350 decrease
$155,350 decrease
didable. The imp

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Given

VIEW

Step 2: calculation :

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $46,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) If the backpack division is dropped, all $484,000 of its variable costs are avoidable, and $216,200 of its fixed costs are avoidable. The impact on Granfield's income from eliminating this business segment would be: Multiple Choice $494,000 decrease $216,200 increase $277,800 decrease $ 978,000 484,000 494,000 540,500 $ (46,500) $494,000 increase
Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $95,000 as shown below. Segment Income (Loss) Sales Variable costs 1,320,000 1,185,000 Contribution margin 135,000 230,000 Fixed costs Income (loss) $ (95,000) If the Small Tools Division is dropped, all of its variable costs are avoidable, and $92,000 of its fixed costs are avoidable. The impact on Carns' Division would be: Multiple Choice $88,300 decrease $92,000 decrease $43,000 decrease arease
Valdez Company is considering eliminating its kitchen division, which reported an operating loss of $59,000 for the past year as shown below. Segment Income (Loss) Sales. Variable costs. Contribution margin Fixed costs Income (loss) If the kitchen division is dropped, all $850,000 of its variable costs are avoidable, and $209,400 of its fixed costs are avoidable. The impact on Valdez's income from eliminating this business segment would be: Multiple Choice $80,600 decrease $290,000 increase $300,600 decrease $1,140,000 850,000 290,000 349,000 $ (59,000) $80,600 increase
A) B) The impact on Gilly Company's operating income from eliminating this business segment would be: C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: If the School Supplies Division is dropped, all of its variable costs are avoidable, and $150,150 of its fixed costs are avoidable. E) Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,121,000 986,000 135,000 231,000 $ (96,000) $14,350 decrease. $15,150 increase. $150,150 decrease. $150,150 increase. $15,150 decrease. A) B) C) D) 20) Gilly Company is considering eliminating its School Supplies Division, which reported a loss for the prior year of $96,000, as shown below: E) Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) The impact on Gilly Company's operating income from eliminating this business segment would be: If the School Supplies Division is…
Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $125,000. Division sales for the year were $1,310,000 and its variable costs were $1,175,000. The fixed costs of the division were $270,000. If the windows division is dropped, 60% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be: Multiple Choice $56,700 decrease $27.000 increase $162,000 decrease $162,000 increase $27,000 decrease
Granfield company is considering eliminating its backpack division, which reported an operating loss for the recent year of $42700. The division sales for the year were $973300 and the variable costs were $482000. The fixed costs of the division were $534000. If the backpack division dropped, 40% of the fixed costs allocated to that division could be eliminated. The impact on granfield operating income for eliminating this business segment would be?
Lafayette Corp. is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $6,000. The division sales for the year were $1,044,000 and the variable costs were $863,000. The fixed costs of the division were $187,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: Multiple Choice $181,000 decrease $181,000 increase $124,900 decrease $56,100 decrease $50,100 decrease
Your Company is considering discontinuing a product. Data from the company's accounting system appear below: Sales $240,000 Variable costs $101,000 Fixed manufacturing costs $ 94,000 Fixed selling & administrative costs $ 55,000 $41,000 of the fixed manufacturing expenses and $25,000 of the fixed selling and administrative expenses cannot be avoided if the product is discontinued. What would be the effect on the company's overall net operating income if the product were dropped?
Soar Incorporated is considering eliminating its mountain bike division, which reported a loss for the recent year of $4,000 as shown below. Segment Income (Loss) Sales $ 1,075,000 Variable costs 870,000 Contribution margin 205,000 Fixed costs 209,000 Income (loss) $ (4,000) If the mountain bike division is dropped, all $870,000 of its variable costs are avoidable, and $62,700 of its fixed costs are avoidable. The impact on income for eliminating this business segment would be:
ABC Company is considering eliminating its parts division as a result of its current operating performance: Sales = $40,000; Variable expenses = $20,000; Contribution margin = $20,000; Fixed expenses = $23,000; Operating income = $(3,000). ABC determines that $15,000 of the $23,000 fixed expenses are direct fixed expenses to the parts division. If ABC Company eliminates the parts division, ABC's total operating income wil
Sanra company is considering eliminating its mountain bike division, which reported an operating loss for the recent year of 3,000. The division sales for the year were 1,050,000 and the variable costs were 860,000. The fixed costs of the division were 193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be: a.57,900 decrease b.132,100 decrease c.54,900 decrease d.190,000 increase e.190,000 decrease
Bright Times Co. is considering closing the table lamp segment. Current revenue was $78,000, with variable costs of $50,000, and fixed costs of $40,000. What is differential income or loss from the table lamp segment and should it be discontinued?