Chapter 6 Hw ??ez omheducationcom tintpr? :006087 13058929640 Chepter 6 HWw ? 15

Question

Chapter 6 Hw ??ez omheducationcom tintpr? :006087 13058929640 Chepter 6 HWw ? 152487087489 ? Question 1 fof 10.00 points Diversited Products, Inc. has reconly acquired a small publshing -a cookbook, a travel guide and a handy speller Each ecent monthly income statement is gliven below company that offers three books for sale book sells for $14 The publishing company's most Product Total Sales 355 000 $ 112.000 $ 172000 $ 71,000 Expenses 13000 38.000 64.100 10.900 7 000 14 600 25 000 7 400 21300 6720 10.320 4.260 4000 23.500 10,100 10.400 000 3.000 3,000 3.000 5 500 11 200 17 200 7.100 Prining costs Advertising General sales Equipment depreciation ales commissions General administration 45 4200 4480 6850 2.8 300 2 100 2.100 2.100 35 600 118,700 153 800 63.100 19.400 16.700) $ 18.200 7900 faciliies otal expenses Net operating income oss The tolowing edditional information is avalable about the company commissions are variable all other costs are ed The sas show Type here to 0

Explanation / Answer

1. Total Company Cookbook Travel Guide Handy Speller Sales 355000 112000 172000 71000 Variable costs: Printing 113000 38000 64100 10900 Sales Commission 35500 11200 17200 7100 Total Variable Costs 148500 49200 81300 18000 Controibution Margin 206500 62800 90700 53000 Traceable fixed costs: Equipment Depreciation 9000 1800 4050 3150 Warehouse Rent 14200 2350 6550 5300 Total traceable fixed costs 23200 4150 10600 8450 Traceable net operating income 183300 58650 80100 44550 Common fixed Expenses: Advertisement 47000 General Sales 21300 Salaries 44000 General Administration 45300 Depreciation - Office Equipment 6300 Total Common fixed expenses: 163900 Net operating income 19400 Equipment Depreciation(20:45:35) 9000 1800 4050 3150 Warehouse Rent (9,400:26,200:21,200) 14200 2350 6550 5300 2.a. No.    If the cookbook is closed, the contribution margin of $62,800 will be lost and thereby making the company incur a net operating loss of $43,400. ($62,800 - $19,400) b-1. Cookbook Travel guide Handy speller Contribution margin 56% 53% 75% b-2. No. The other two are having a higher contribution margin than travel guide.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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