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Author Question: Betty Hopper, controller for Diamond Manufacturing Company, has prepared the following financial ... (Read 47 times)

moore.cailinf

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on: Feb 5, 2023
Betty Hopper, controller for Diamond Manufacturing Company, has prepared the following financial information for the most recent period showing profitability of its three divisions:

​​ApplianceElectronicsFurniture
Sales$102,000$108,000$120,000
Variable expenses  86,000  92,000114,000
Contribution margin16,00016,0006,000
Fixed expenses:​​​
  Factory insurance1,0001,4002,200
  Depreciation2,0002,6003,600
  Advertising600600600
  Utilities       800    1,000     1,200
Total fixed expenses    4,400    5,600     7,600
Operating income$11,600$10,400($  1,600)

The factory insurance and advertising assigned to the furniture division are avoidable if the division is discontinued. Depreciation will remain unchanged if a division is dropped. Discontinuing furniture will reduce the utilities by $800.

Required:

a.Prepare an analysis showing whether Furniture should be eliminated.
b.If the Furniture division is eliminated, what will be effect on the overall profit for
Diamond?
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by moore.cailinf on Feb 5, 2023

queenBea90

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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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moore.cailinf

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

blakcmamba

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

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