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Author Question: State Road Fabricators Inc. is considering eliminating Model A02777 because of losses over the past ... (Read 107 times)

hbsimmons88

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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 materials160,000
Direct labor ($15 per hour)80,000
Overhead150,000
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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by hbsimmons88 on Mar 6, 2021

ankilker

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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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hbsimmons88

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

irishcancer18

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Reply 3 on: Yesterday
Excellent

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