Business, 11.05.2021 17:00 ChessieGiacalone
FunTime Company produces three lines of greeting cards: scented, musical, and regular. Segmented income statements for the past year are as follows:
Scented Musical Regular Total
Sales $10,000 $15,000 $25,000 $50,000
Less: Variable expenses 7,000 12,000 12,500 31,500
Contribution margin $3,000 $3,000 $12,500 $18,500
Less: Direct fixed expenses 4,000 5,000 3,000 12,000
Segment margin $(1,000) $(2,000) $9,500 $6,500
Less: Common fixed expenses 7,500
Operating income (loss) $(1,000)
Kathy Bunker, president of FunTime, is concerned about the financial performance of her firm and is seriously considering dropping both the scented and musical product lines. However, before making a final decision, she consults Jim Dorn, FunTime’s vice president of marketing. Jim warns Kathy that eliminating the scented and musical lines would lower the sales of the regular line by 20%.
Required:
Prepare an income statement for Fun Time assuming the Scented and Musical greeting card lines are dropped.
Answers: 3
Business, 22.06.2019 02:30
On january 1, 2018, jay company acquired all the outstanding ownership shares of zee company. in assessing zee's acquisition-date fair values, jay concluded that the carrying value of zee's long-term debt (8-year remaining life) was less than its fair value by $21,600. at december 31, 2018, zee company's accounts show interest expense of $14,440 and long-term debt of $380,000. what amounts of interest expense and long-term debt should appear on the december 31, 2018, consolidated financial statements of jay and its subsidiary zee? long-term debt $401,600 $398,900 $401,600 $398,900 interest expense $17,140 $17,140 $11,740 $11,740 a. b. c. d.
Answers: 3
Business, 22.06.2019 02:40
Which critical success factor improves with reduced cycle time, better quality standards, and improved efficiency when an is is implemented?
Answers: 3
Business, 22.06.2019 08:00
In addition to using the icons to adjust page margins, a user can also use
Answers: 1
Business, 22.06.2019 15:00
Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive
Answers: 1
FunTime Company produces three lines of greeting cards: scented, musical, and regular. Segmented inc...
Mathematics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
Biology, 06.01.2021 19:10
English, 06.01.2021 19:10
Physics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
Mathematics, 06.01.2021 19:10
French, 06.01.2021 19:10
English, 06.01.2021 19:10