Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $44,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 970,000 480,000 490,000 534, 500 $ (44,500) the backpack division is dropped, all $480,000 of its variable costs are avoidable, and $213,800 of its fixed costs are avoidable. The impact Granfield's income from eliminating this business segment would be:

Granfield Company is considering eliminating its backpack division, which reported a loss for the recent year of $44,500 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 970,000 480,000 490,000 534, 500 $ (44,500) the backpack division is dropped, all $480,000 of its variable costs are avoidable, and $213,800 of its fixed costs are avoidable. The impact Granfield's income from eliminating this business segment would be:

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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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
Gion Company is considering ellminating its Windows division, which reported a loss for the prior year of $92000 as shown below. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,122,000 987,000 135,000 232,000 $ (97,000) If the Windows division is dropped, all of its variable costs are avoidable, and $150,800 of its fixed costs are avoidable. The impact on Glon's operating income from eliminating this business segment would be
A manufacturer is considering eliminating a segment because it shows the following $6,400 loss. All $21,300 of its variable costs are avoidable, and $39,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 63,900 21,300 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be eliminated? 42,600 49,000 (6,400) Complete this question by entering your answers in the tabs below. Segment Elimination Analysis Sales Variable costs Contribution margin Required A Required B Compute the income increase or decrease from eliminating this segment. Fixed costs Income (loss) Continue S $ 63,900 21,300 42,600 49,000 (6,400) Eliminate
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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…
Central Industries has three product lines: A, B, and C. The information given below is available. Central Industries is thinking about dropping Product C because it is reporting a loss. Assume Central Industries drops Product C Pand does not replace it. What will happen to operating income Sales Variable costs Contribution margin Avoidable fixed costs Unavoidable fixed costs Operating income(loss) Product A $100,000 76,000 24,000 9,000 6.000 $9.000 Product B $90,000 48.000 42,000 18,000 9,000 $15.000 Product C $44,000 35,000 9,000 3,000 7.700 $(1.700) increase by $600 increase by $1,700 decrease by S6,000 decrease by S9,000 () increase by $2,400 ()
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