Current Attempt Pharoahlndustries manufactures light fixtures for home, retail, and industrial customers. The retail 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: Home Retail Industrial Total $550600 $320600 $830600 $1701800 Sales 357800 218300 681500 1257600 Variable costs Contribution 192800 102300 149100 444200 margin Fixed costs 125600 130600 115600 371800 Operating income $67200 $(28300) $33500 $72400 Of the fixed costs, $316800 of it is common costs that have been allocated equally to each product line. What will total operating income be if Pharoah drops the retail line? $77300 $(4900) $100700 $25100
Current Attempt Pharoahlndustries manufactures light fixtures for home, retail, and industrial customers. The retail 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: Home Retail Industrial Total $550600 $320600 $830600 $1701800 Sales 357800 218300 681500 1257600 Variable costs Contribution 192800 102300 149100 444200 margin Fixed costs 125600 130600 115600 371800 Operating income $67200 $(28300) $33500 $72400 Of the fixed costs, $316800 of it is common costs that have been allocated equally to each product line. What will total operating income be if Pharoah drops the retail line? $77300 $(4900) $100700 $25100
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 21M
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