The door company produces four different doors: A, B, C and D. The sales proceeds and costs of these doors are presented below. Sales Revenue Fixed Expenses Variable Expenses Profit / Loss A B C D 1.400 2.000 3.000 2.500 600 400 500 800 1.800 1.200 1.500 2.400 (1.400) 400 1.000 (700) The company is considering stopping the production of some doors (A,B,C,D) to prevent damage. Specify which doors the company should stop producing and calculate the impact of the decision that the company should make on profitability?
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- Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below: Alternative A Alternative B Materials costs $ 49,000 $ 64,700 Processing costs $ 44,900 $ 44,900 Equipment rental $ 15,500 $ 15,500 Occupancy costs $ 17,400 $ 26,100 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Garrison_16e_Rechecks_2019_10_10 Multiple Choice $126,800 $(24,400) $151,200 $(139,000)The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear below: Sales Variable expenses Fixed manufacturing expenses Fixed selling and administrative expenses All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $179,000 of the fixed manufacturing expenses and $155,200 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D? Should the product be dropped? Net operating income (loss) would $ 745,000 $ 387,000 $ 253,400 $216,200 decline increase by if product B90D were dropped. Therefore, the product droppedLittle Cory Corporation is considering dropping product G41O. Data from the company's accounting system appear below: All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $117,000 of the fixed manufacturing expenses and $46,000 of the fixed selling and administrative expenses are avoidable if product G41O is discontinued.Required:a. According to the company's accounting system, what is the net operating income earned by product G41O? b. What would be the effect on the company's overall net operating income of dropping product G41O? Should the product be dropped? There is not a word length requirement for this question; however, you must show your work. sales 450,000 variable expenses 185,000 fixesd manufacturing expenses 149,000 fixed selling and administered expenses 113,000
- Ouzts Corporation is considering Altemnative A and Alternative B. Costs associated with the alternatives are listed below: Alternative Alternative Materials costs Processing costs Equipment rental Occupancy costs $ 42,000 $ 38,600 $ 13,400 $ 15,100 $ 56,200 $ 38,600 $ 13,400 $ 22,600 What is the financial advantage (disadvantage) of Alternative B over Alternative A? Multiple Cholce $109100 $21.700) $130.800 其其 69°F Mostly pe here to search DELLFrisco Company is a headphones manufacturer. Frisco is considering eliminating its wired earbuds division because its $100,170 expenses are higher than its $93,210 sales. The company reports the following expenses for this division. Cost of goods sold Direct expenses Indirect expenses Service department costs Wired Earbuds Division is: Sales Expenses: Avoidable Expenses $ 70,500 9,750 890 11,800 Should the division be eliminated? (Any loss amount should be indicated with minus sign.) Total expenses Net income (loss) Revenues from wired earbuds division Avoidable expenses Revenues are greater than (less than) avoidable expenses by Unavoidable Expenses Kept $ 2,150 2,400 2,680 Eliminated6. The Lanterm Corporation has 1,000 obsolete lanterns that are carried in inventory at a manufacturing cost of P20,000. If the lanterns are re-machined for P5,000, they could be sold for P9,000. Ifthe lanterns are scrapped, they could be sold for P1,000. What alternative is more desirable and what are the total relevant costs for the alternative? a. Re-machine and P5,000. b. Re-machine and P25,000. c. Scrap and P20,000. d. Neither, as there is an overall loss under either alternatives. < O O
- At the end of the year the production manager is taking inventory and finds 600 units of an older model of invisible fencing that the company no longer manufactures. These obsolete units can be disposed of through their regular channels, thereby incurring variable marketing expenses. What is the lowest price that they should accept for these obsolete units, realizing that if they do not sell them these units will have to be thrown away. (Show all supporting calculations). (NOTE: ignore taxes or other costs not specifically mentioned in the questions.)Hong Publishing has purchased Lang Publishing. After reviewing titles from both companies, a decision must be made to determine what titles must be dropped. The following information is available to make the decision. A. What Is the total income if all titles were produced? B. If Title X was dropped, what would be the effect on Net Income? C. How much did Title X Contribute to Fixed Costs? D. Determine the cost and the amount that will remain even it Title X is dropped? E. Which costs and amount will be eliminated if Title X is dropped?Certain production equipment used by Dayton Mechanical has become obsolete relative to current technology. The company is considering whether it should keep or replace its existing equipment. To aid in this decision, the company’s controller gathered the following data: (See attached) c. What is the total dollar amount of all relevant costs to the equipment replacement decision. $______ d. What is the total dollar amount of the opportunity costs associated with the alternative of keeping the old equipment? $______
- IT Company has 15,000 units in inventory that had a production cost of P3 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of P23,000 and sold for P28,000. Another alternative is to sell the units to a junk dealer for P8,500. The relevant cost for IT Company to consider in making its decision is A.P45,000 of original product costs B.P23,000 for reworking the units C.P68,000 for reworking the units D.P28,000 for selling the units to the junk dealerKim Yin Company has 15,000 units in inventory that had a production cost of $3 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of $23,000and sold for $28,000. Another alternative is to sell the units to a junk dealer for $8,500. Should Kim Yin Company scrap or rework the units? By how much will they be better off? Please provide the answers as well as the solutions to the questions. Thank you!Studemeir Paint & Floors (SPF) is a retail store specializing in home improvement. The store has experienced net operating losses in its Other Flooring Products line during the last few periods. SPF’s management team thinks that the store will improve its profitability if it stops carrying the Other Flooring Products line. The operating results from the most recent period are: Paint and Paint Supplies Carpet Other Flooring Products Sales $ 193,700 $ 218,000 $ 197,000 Cost of goods sold 127,000 149,000 158,000 SPF estimates that store operating expenses are approximately 25% of revenues. Harish Rana, SPF’s controller, states that while every sale has one purchase order, not every sales dollar requires or uses the same amount of store support activities. He conducts a preliminary investigation and his results and analysis are as follows: Activity (cost driver) Paint and Paint Supplies Carpet Other Flooring Products Order processing (number of purchase orders) 385 133 120 Receiving…