Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 12.00

Porcelain Tableware Company

The condensed product-line income statement for Porcelain Tableware Company for the month of December is as follows:

 

 

Bowls

Plants

Cups

Sales

$65,000

$89,400

$26,900

Cost of Goods Sold

26,300

32,800

14,800

Gross Profit

$38,700

$56,600

$12,100

Selling and Admin Expenses

29,400

34,900

15,400

Income from Operations

$9,300

$21,700

$(3,300)

 

Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be materially affected if the Cups line were discontinued.

 

Prepare a differential analysis dated December 31, 2012, to determine if cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero "0".

Differential Analysis
Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2)
December 31, 2012
   
Continue Cups (Alternative 1)
 
Discontinue Cups (Alternative 2)
 
Differential Effect on Income (Alternative 2)
Revenues
 
$ Correct 8 of Item 1
 
$ Correct 9 of Item 1
 
$ Correct 10 of Item 1
Costs:
           
Variable cost of goods sold
 
Correct 13 of Item 1
 
Correct 14 of Item 1
 
Correct 15 of Item 1
Variable selling and admin. expenses
 
Correct 17 of Item 1
 
Correct 18 of Item 1
 
Correct 19 of Item 1
Fixed costs
 
Correct 21 of Item 1
 
Correct 22 of Item 1
 
Correct 23 of Item 1
Income (Loss)
 
$ Correct 25 of Item 1
 
$ Correct 26 of Item 1
 
$ Correct 27 of Item 1

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 07:08 PM My Price 12.00

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