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Author Question: Knoll Manufacturing has manufacturing facilities in several locations. One of Knoll's facilities has ... (Read 66 times)

hannahmadyronde

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on: Feb 5, 2023
Knoll Manufacturing has manufacturing facilities in several locations. One of Knoll's facilities has been showing losses over several quarters, and management is considering closing the facility. If the facility is closed, only two part-time employees will be retained by Knoll. The annual wage of each part-time worker is $14,400. This particular location has been in operation for many years. As a result, the manufacturing equipment has no resale value. Following is the most recent income statement for the facility:

Sales$3,650,000
Less: Variable expenses 2,555,000
Contribution margin1,095,000
Less: Fixed expenses​
    Wages684,000
    Insurance176,800
    Depreciation294,000
    Advertising       22,000
Operating income$    (81,800)

What would be the impact on Knoll's overall operating income if the manufacturing facility is eliminated?
◦ Increase by $81,800 per year
◦ Decrease by $241,000 per year
◦ Increase by $322,800 per year
◦ Decrease by $226,600 per year
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by hannahmadyronde on Feb 5, 2023

kugyo01

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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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hannahmadyronde

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

scottmt

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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