Sandhill Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes inother product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow:Sour CreamIce CreamYogurtButterTotalUnits sold2,4006004802403,720Revenue$12,000$24,000$12,000$24,000$72,000Variable departmental costs7,20015,6005,0405,76033,600Fixed costs6,0002,4003,6008,40020,400Net income (loss)$(1,200)$6,000$3,360$9,840$18,000Prepare an incremental analysis of the effect of dropping the sour cream product line. (Enter negative amounts using either anegative sign preceding the number e.g. -45 or parentheses e.g. (45).)

The incremental analysis is performed to analyze the effect of decision on the business or its…

Answered: Sandhill Inc. has 4 product lines: sour…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Selling price per unit Variable expenses per unit Traceable fixed expenses per year %24 %24 2.50 $ 130,000 Greengrow 2$ $ 13.00 $ 34,000 8.00 38.00 Last year the company produced and sold 37,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $101,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company
Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow: Units sold Revenue Variable departmental costs Fixed costs Net income (loss) Sour Cream 2,000 $ 10,000 6,000 5,000 $ (1,000) Ice Cream 500 $ 20,000 $ 13,000 2,000 5,000 Yogurt $ 400 $ 10,000 4,200 3,000 2,800 Butter 200 $ 20,000 4,800 7,000 $ 8,200 Total 3,100 $ 60,000 28,000 17,000 $ 15,000 Prepare an incremental analysis of the effect of dropping the sour cream product line. (Ent negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) SUPPORT
Cullumber Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by changes in other product lines. 30% of the fixed costs are direct, and the other 70% are allocated. Results of June follow. Units sold Revenue Variable departmental costs Fixed costs Net income (loss) Sour Cream 2,120 $10,600 6.360 5,300 $(1,060) Ice Cream $ 530 $21,200 13,780 2,120 $5,300 Yogurt 424 $10,600 4,452 3,180 $2.968 Butter 212 $21,200 5,088 7,420 $8.692 Total 3,286 $63,600 29,680 18,020 $15.900 Prepare an incremental analysis of the effect of dropping the sour cream product line. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)
Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year. Weedban $ 8.00 $ 3.20 $ 135,000 Product Greengrow $ 35.00 $ 13.00 $ 45,000 Last year the company produced and sold 42,500 units of Weedban and 21,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
S Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 6.00 $2.40 $ 45,000 Product Greengrow $ 7.50 $5.25 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Prev Required: Prepare a contribution format income statement segmented by product lines. Total Company 1 of 4 Product Line Weedban Greengrow Next >
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 6.00 $ 7.50 Variable expenses per unit $ 2.40 $ 5.25 Traceable fixed expenses per year $ 45,000 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Required: Prepare a contribution format income statement segmented by product lines.
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow.: Product Selling priee per unit Variable expensen per unit Traceable fixed expenses per year Weedban $ 10.00 $2.70 $ 129,000 Greengrow $ 40.00 $ 11.00 $ 45,000 Last year the company produced and sold 37,500 units of Weedban and 20,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Product Line Total Weedban Greengrow Company Sales Variable expenses Contribution margin Traceable fixed expenses Product line segment margin Common fixed expenses not traceable to products Net operating income
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit S 10.00 S 31.00 Variable expenses per unit $ 3.10 $ 13.00 Traceable fixed expenses per year $ 135,000 S 47,000 Last year the company produced and sold 36, 500 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $105,000. Required: Prepare a contribution format income statement segmented by product lines.
Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns throughout the year. To plan for the future, Mr. Jones wants to determine its cost behavior patterns. He has the following information available about the ice cream stand's operating costs and the number of soft serve cones served. Month April May June July August September Number of ice cream cones 2000 2,100 OA $800 OB $1000 OC. $4800 OD. $2000 2,125 4000 2,500 2,900 Total operating costs $1800 $1,975 $2,000 $2800 $2,175 $2,500 Using the high-low method, the fixed costs for a month are (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.)
Parino Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not affected by changes in other product lines. Results of the fourth quarter are presented below: Books Music Videos Total Units sold 1,000 2,000 2,000 5,000 Revenue $24,000 $48,000 $32,000 $104,000 Variable departmental 15,000 22,000 23,000 60,000 Costs Direct fixed costs 3,000 6,000 4,000 13,000 Allocated fixed costs 4,400 8,800 8,800 22,000 Net income (loss) $1,600 $11,200 $ (3,800) $9,000 Question: The incremental decrease in profit to drop video line is…
Grease Company makes three products. Following are the revenue and cost data for a typical month. PRODUCTS X Y Z TOTAL Sales P300 P500 P800 P1,600 Variable Costs 100 200 400 700 Contribution Margin P200 P300 P400 P900 Fixed Costs: Avoidable P80 P100 P120 P300 Common, allocated on the basis of peso sales 60 100 160 320 Total Fixed Costs P140 P200 P280 P620 PROFIT P60 P100 P120 P280 REQUIRED: Answer each of the following questions independently. Closer analysis reveals that X, Y, and Z are joint products of a joint process and all are now being processed beyond the split-off point. The cost of the joint process including raw material, is the P320 joint allocated fixed cost. All of the split-off point. If the sales values of X, Y, and Z at split-off are P110, P220, and P230, respectively, could be the company increase its profits by selling…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS