Author Question: State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past ... (Read 144 times)

hbsimmons88 · **on:** Mar 6, 2021

State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past quarter. The past three months of information for Model A02777 are summarized below:

Sales (1,100 units)

$470,000

Manufacturing costs:

Direct materials

160,000

Direct labor ($15 per hour)

80,000

Overhead

150,000

Operating loss

($80,000)

Overhead costs are 75% variable and the remaining 25% is depreciation of special equipment for model A02777 that has no resale value.

If Model A02777 is dropped from the product line, operating income will ________.
◦ increase by $80,000
◦ decrease by $117,500
◦ increase by $37,500
◦ decrease by $80,000

ankilker · **Reply #1 on:** Mar 6, 2021

A FREE account is required to view all solutions!

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.

Answer Preview

Only 50% of students answer this correctly