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Author Question: Colonial North Manufacturing, Inc. is considering eliminating one of its product lines. The fixed ... (Read 35 times)

casperchen82

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on: Mar 6, 2021

Question 1

A segment has the following data:

Sales$650,000
Variable costs386,000
Fixed costs365,500

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?
◦ $284,500 increase
◦ $386,000 decrease
◦ $264,000 decrease
◦ $365,500 decrease

Question 2

Colonial North Manufacturing, Inc. is considering eliminating one of its product lines.  The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance. What financial effects occur if the product line is discontinued?
◦ net income will decrease by the amount of the contribution margin of the product line being discontinued
◦ the company's total fixed costs will increase by the amount of the contribution margin of the product line being discontinued
◦ the company's total fixed costs will decrease by the amount of the product line's fixed costs
◦ net income will decrease by the amount of the product line's fixed costs
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by casperchen82 on Mar 6, 2021

matt95

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Reply #1 on: Mar 6, 2021
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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casperchen82

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Reply 2 on: Mar 6, 2021
Wow, this really help

yeungji

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

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