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Author Question: Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most ... (Read 59 times)

Pea0909berry

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on: Jan 4, 2020
Pottery Unlimited has two product lines:  cups and pitchers.  Income statement data for the most recent year follow:

​TotalCupsPitchers
Sales revenue$460,000$310,000$150,000
Variable expenses355,000235,000120,000
Contribution margin105,00075,00030,000
Fixed expenses76,00038,00038,000
Operating income (loss)$29,000$37,000$(8,000)


Assuming the Pitcher line at Pottery Unlimited is dropped, total fixed costs remain unchanged, and the space formerly used to produce the Pitcher line is used to double the production of Cups, how will operating income be affected?
◦ Increase $45,000
◦ Decrease $45,000
◦ Increase $74,000
◦ Increase $150,000
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by Pea0909berry on Jan 4, 2020

kishoreddi

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Reply #1 on: Jan 4, 2020
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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Pea0909berry

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Reply 2 on: Jan 4, 2020
YES! Correct, THANKS for helping me on my review

amcvicar

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Reply 3 on: Yesterday
Wow, this really help

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