Can I please get step by step solutions to these problems please. 5) Eagle Corpo
ID: 2380689 • Letter: C
Question
Can I please get step by step solutions to these problems please.
5) Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:
Variable cost
per table
Total fixed cost
for the year
Manufacturing cost
$88
$255,300
Selling and administrative
$6
$36,630
In its first year of operations, Eagle produced and sold 11,100 tables. The tables sold for $132 each.
If Eagle had sold only 9,680 tables in its first year, what total amount of cost would have been assigned to the 1,420 tables in finished goods inventory under the absorption costing method?
$78,810
$29,820
$124,960
$157,620
7) The Rial Company's income statement for June is given below:
Total
Division F
Division L
Sales
$471,900
$290,000
$181,900
Variable expenses
239,827
179,800
60,027
Contribution margin
232,073
110,200
121,873
Traceable fixed expenses
136,000
56,400
79,600
Segment margin
96,073
$53,800
$42,273
Common fixed expenses
39,900
Net operating income
$56,173
If sales for Division F increase $45,200 with a $13,500 increase in the Division's traceable fixed costs, the overall company net operating income should:
decrease by $9,824
increase by $31,700
increase by $3,676
increase by $1,565
8)
The Rial Company's income statement for June is given below:
Total
Division F
Division L
Sales
$487,500
$301,000
$186,500
Variable expenses
224,805
159,530
65,275
Contribution margin
262,695
141,470
121,225
Traceable fixed expenses
139,800
60,000
79,800
Segment margin
122,895
$81,470
$41,425
Common fixed expenses
39,400
Net operating income
$83,495
A proposal has been made that will lower variable expenses in Division L to 30% of sales. However, this reduction can only be accomplished by a $23,300 increase in Division L's traceable fixed expenses. If this proposal is implemented and if sales remain constant, overall company net operating income should:
decrease by $23,300
increase by $23,300
decrease by $13,975
increase by $32,625
5) Eagle Corporation manufactures a picnic table. Shown below is Eagle's cost structure:
Explanation / Answer
5)
$157,620
7)
increase by $3,676
8)
decrease by $13,975
$157,620
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