Recent Posts • Latest Topics • Unanswered Questions

Betty Hopper, controller for Diamond Manufacturing Company, has prepared the following financial ...

Kss612

wrote...

Go to Answer

Posts: 158

Rep:

A year ago

Betty Hopper, controller for Diamond Manufacturing Company, has prepared the following financial ...

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

Appliance

Electronics

Furniture

Sales	$102,000	$108,000	$120,000
Variable expenses	86,000	92,000	114,000
Contribution margin	16,000	16,000	6,000
Fixed expenses:
Factory insurance	1,000	1,400	2,200
Depreciation	2,000	2,600	3,600
Advertising	600	600	600
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?

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

Read 47 times

1 Reply

Report

Replies

Answer verified by a subject expert

bwhurd

wrote...

Posts: 141

Rep:

A year ago

More solutions for this book are available here

Report

Related Topics

Kss612 Author

wrote...

A year ago

Helped a lot

karamsidhu1

wrote...

Yesterday

I appreciate what you did here, answered it right Smiling Face with Open Mouth

Gamiung3657

wrote...

2 hours ago

This calls for a celebration Person Raising Both Hands in Celebration

New Topic

Quick Reply

Explore

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

495 People Browsing

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

Live Chat

Related Images

227

125

462

Your Opinion

Previous poll results: What's your favorite math subject?

Strange Ingredients Lurking in Doritos Chips

Courses by Biology Forums

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

The Toxic Skin and Fungi Defense

Bonobos, Chimpanzees, and the 98% DNA Link

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.