ACC 331 Mod 6 Spreadsheet Exam CH 13

ACC 331 Mod 6 Spreadsheet Exam CH 13 -...

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    associated with the alternatives are listed below: ALT M ALT N Supplies costs 43000 43000 Assembly costs 43000 56000 Power costs 26000 26000 Inspection costs 19000 26000 Required: a. Which costs are relevant and which are not relevant in the choice between th Supplies costs Assembly costs Relevant = costs differ Power costs Inspection costs Relevant = costs differ ALT M ALT N 43000 43000 43000 56000 26000 26000 19000 26000 TOTAL 131000 151000 1. Saalfrank Corporation is considering two alternatives that are code-named M and  Not Relevant = costs do NOT differ Not Relevant = costs do NOT differ b. What is the differential cost between the two alternatives? 
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these two alterna Differential Costs 0 13000 0 7000 20000  N. Costs
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Store A Sales  $400,000  Variable expenses  160,000  Contribution margin  240,000  Traceable fixed expenses  100,000  Store segment margin  140,000  Common fixed expenses  20,000  Net opreating income  $120,000  Due to its poor showing, consideration is being given to closing Store B. Studies show that if S is closed, one-fourth of its traceable fixed expenses will continue unchanged. The studies also that closing Store B would result in a 10 percent decrease in sales in Store A. The company a common fixed expenses to the stores on the basis of sales dollars. Required: Store A Sales  $400,000  Variable expenses  160,000  Contribution margin  240,000  Traceable fixed expenses  100,000  Store segment margin  140,000  Common fixed expenses  20,000  Net opreating income  $120,000  Loss in contribution margin if Store B is closed: Store B loss  ($180,000) Store A loss   (24,000) (10% × $240,000)  Total lost contribution margin  ($156,000) Fixed costs avoided if Store B is closed  (75% × $200,000)  Net disadvantage of closing Store B  2. The most recent monthly income statement for Benner Stores is given below: Compute the overall increase or decrease in the company's operating income if Store B is clos    150,000  ($  54,000 )
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ACC 331 Mod 6 Spreadsheet Exam CH 13 -...

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