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Category > Accounting Posted 09 May 2017 My Price 7.00

Greenland

16. Greenland 00., an organic products retailer, has two departments: Housewares and Gardenwares. The
company’s most recent monthly contlibution margin format income statement is as follows: Department Housewares Gardenwares Total Company
Sales $603,000 $362,000 $965,000
Variable expenses $231,000 $150,000 $381,000
Contribution margin $3 72,000 $2 12,000 $584,000
Fixed expenses $64,000 $2 18,000 $282,000
Net operating income (loss) $308,000 £6,000; $302,000 Inteinal reports indicate that $38,100 of the fixed expenses being charged to Gardenwares are allocated costs that
will continue even if the Gardenwares Department is dropped. Also, eliminating the Gardenwares Department will
result in a 19% decrease in sales for the Housewares Department. What is the impact to the total company’s profit if the Gardenwares Department is dropped?
Profit would decrease by $ 146,670 Profit would decrease by $ 102,? 80 Profit would decrease by $32,100 Profit would increase by $6,000 9953‘?»

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SuperTutor
(15)
Status NEW Posted 09 May 2017 02:05 AM My Price 7.00

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