Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
wallyboy wallyboy
wrote...
Go to Answer
Posts: 133
Rep: 0 0
A year ago
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:

​​SingleDoubleCompetitiveTotal
Sales$687,500$400,000$1,037,500$2,125,000
Variable costs446,875272,000850,7501,569,625
Contribution margin240,625128,000186,750555,375
Fixed costs156,250162,500   143,750   462,500
Operating income$   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
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 48 times
1 Reply
Replies
Answer verified by a subject expert
angelofavariceangelofavarice
wrote...
#1
Posts: 140
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wallyboy Author
wrote...

A year ago
Thanks for your help!!
derya1234
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
jodie1
wrote...

2 hours ago
Just got PERFECT on my quiz
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1306 People Browsing
 113 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 309
  
 45
  
 1784
Your Opinion
Where do you get your textbooks?
Votes: 372
Previous poll results: What's your favorite math subject?