The management of Kabanuck Corporation is considering dropping product V41B. Dat

Question

The management of Kabanuck Corporation is considering dropping product V41B. Date from the company's accounting system appear below: All fixed expenses of the company are fully allocated to product in the company's accounting system Further investigation has revealed that 209,000 of the fixed manufacturing expenses and 120,000 of the fixed selling and administrative expense are avoidable if product V41B discountined. According to the company's accounting system , what this the net operating income earned by product V41B? include all costs in this calculation - whether relevant or not.

Explanation / Answer

Sales 9,28,000.00 Variable Cost 4,07,000.00 Fixed Manufactruing Expense 3,42,000.00 Cost of Goods Sold 7,49,000.00 Gross Margin 1,79,000.00 Selling And admin expenses 2,49,000.00 Total Opeating Expenses 2,49,000.00 Net Operating Income     -70,000.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.