Recent Posts • Latest Topics • Unanswered Questions

Channing Company is a large internet retailer with fulfillment warehouses in numerous locations ...

Neptunesx101x

wrote...

Go to Answer

Posts: 120

Rep:

A year ago

Channing Company is a large internet retailer with fulfillment warehouses in numerous locations ...

Channing Company is a large internet retailer with fulfillment warehouses in numerous locations throughout the U.S. One of Channing's warehouses has been showing losses over several quarters, and management is considering closing the warehouse. If the warehouse is closed, only the warehouse manager will be retained by Channing. The warehouse manager's annual salary is $65,000. The warehouse fixtures and equipment have no resale value. Following is the most recent income statement for the warehouse:

Sales	$1,440,000
Less: Variable expenses	1,040,000
Contribution margin	400,000
Less: Fixed expenses
Wages	329,800
Insurance on inventory	31,200
Depreciation on fixtures	21,600
Advertising	36,000
Operating income	$ (18,600)

What will be the impact on Channing's overall operating income if the warehouse is eliminated?

▸ Increase by $18,600 per year

▸ Increase by $46,400 per year

▸ Decrease by $68,000 per year

▸ Decrease by $86,600 per year

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

Read 36 times

1 Reply

Report

Replies

Answer verified by a subject expert

wonton1

wrote...

Posts: 120

Rep:

A year ago

More solutions for this book are available here

Report

Related Topics

Neptunesx101x Author

wrote...

A year ago

Smart ... Thanks!

Hellish Lover

wrote...

Yesterday

Helped a lot

mikeh209

wrote...

2 hours ago

Thanks for your help!!

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1252 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

1050

1493

Your Opinion

Previous poll results: Which country would you like to visit for its food?

Courses by Biology Forums

Bonobos, Chimpanzees, and the 98% DNA Link

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

The Toxic Skin and Fungi Defense

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.