Author Question: Brown Manufacturing makes single kayaks, double kayaks, and lightweight competitive kayaks. The ... (Read 24 times)

Aimless0988 · **on:** Feb 5, 2023

Brown Manufacturing makes single kayaks, double kayaks, and lightweight competitive kayaks. The double kayak line has been showing losses for several years, and management is considering dropping the line. Recent income statements have been very similar to the following information which was prepared for the most recent year:

Single

Double

Competitive

Total

Sales	$687,500	$400,000	$1,037,500	$2,125,000
Variable costs	446,875	272,000	850,750	1,569,625
Contribution margin	240,625	128,000	186,750	555,375
Fixed costs	156,250	162,500	143,750	462,500
Operating income	$ 84,375	$(34,500)	$ 43,000	$ 92,875

Of the fixed costs, $393,750 is common costs that have been allocated equally to each product line. What will total operating income be if Brown drops the double kayak line?
◦ $(3,875)
◦ $96,750
◦ $33,625
◦ $127,375

BryanAultm · **Reply #1 on:** Feb 5, 2023

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 32% of students answer this correctly