C Not Secure v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker

Question

C Not Secure v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-&takeAssignmentSessi.; Q marks e, sign ln ¡:- apter 8 Homework Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Sales revenue Less: Variable expenses Contribution margin Less direct fixed expenses: Alanson Boyne Conway Total $270 $1,735 162 1,322 $413 $1,280 $185 45 $165 $140 1,115 $108 50 95 $20 15 85 $40 Depreciation 12 116 296 Salaries Segment margin Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped Required: $(20) $40

Explanation / Answer

a) Loss if product continue = (20)

Loss if product dropped = (128)

Profit will decrease by (108)

b) Keep

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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