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Author Question: Channing Company is a large internet retailer with fulfillment warehouses in numerous locations ... (Read 24 times)

kmcolvin

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on: Feb 5, 2023
Channing Company is a large internet retailer with fulfillment warehouses in numerous locations throughout the U.S. One of Channing's warehouses has been showing losses over several quarters, and management is considering closing the warehouse. If the warehouse is closed, only the warehouse manager will be retained by Channing. The warehouse manager's annual salary is $65,000. The warehouse fixtures and equipment have no resale value. Following is the most recent income statement for the warehouse:

Sales$1,440,000
Less: Variable expenses1,040,000
Contribution margin400,000
Less: Fixed expenses​
    Wages329,800
    Insurance on inventory31,200
    Depreciation on fixtures21,600
    Advertising     36,000
Operating income$  (18,600)

What will be the impact on Channing's overall operating income if the warehouse is eliminated?
◦ Increase by $18,600 per year
◦ Increase by $46,400 per year
◦ Decrease by $68,000 per year
◦ Decrease by $86,600 per year
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by kmcolvin on Feb 5, 2023

hariet5

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Reply #1 on: Feb 5, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kmcolvin

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Reply 2 on: Feb 5, 2023
Gracias!

Joy Chen

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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