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Author Question: Jerry Mounds, controller for Pearl Distributing, has prepared the following financial information ... (Read 62 times)

Aimless0988

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on: Feb 5, 2023
Jerry Mounds, controller for Pearl Distributing, has prepared the following financial information for the most recent period showing profitability the of its three departments:

​Department ADepartment BDepartment C
Sales$52,000$18,000$20,000
Variable expenses 36,000 10,000 14,000
Contribution margin16,0008,0006,000
Fixed expenses:​​​
  Factory rent2,0001,4003,200
  Depreciation2,0006002,600
  Utilities   1,800   1,000   1,200
Total fixed expenses   5,800   3,000   7,000
Operating income$10,200$  5,000($1,000)

The factory rent of $3,200 assigned to Department C is avoidable if the department is eliminated. Depreciation will remain unchanged if a department is dropped. Discontinuing Department C will reduce the utilities by $600.

Required:

Prepare an analysis showing whether Department C should be eliminated.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by Aimless0988 on Feb 5, 2023

heathercab

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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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Aimless0988

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

carlsona147

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

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