BU330 Accounting - If Germain Appliances can eliminate fixed costs of $34,000
Question # 00679686
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Updated on: 05/02/2018 07:34 AM Due on: 05/02/2018
BU330 Accounting for Managers
Total
$620,000 $255100 $875,000
$440000 $210100 $650,000 Contribution margin $180,000 $45,00I $225,000
Fixed ex - enses $75,000 $75,00l $150,000
Operating income (loss) $105,000 $(30,000) $75,000
$620,000 $255100 $875,000
$440000 $210100 $650,000 Contribution margin $180,000 $45,00I $225,000
Fixed ex - enses $75,000 $75,00l $150,000
Operating income (loss) $105,000 $(30,000) $75,000
If Germain Appliances can eliminate fixed costs of $34,000 and increase the sale of Toasters by 6300 units at a selling price of $30 per unit and a contribution margin of $12 per unit, then
discontinuing the Microwaves should result in what difference in total operating income?
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Solution: BU330 Accounting - If Germain Appliances can eliminate fixed costs of $34,000