~$ACC 331 Mod 6 Spreadsheet Exam CH 13

~$ACC 331 Mod 6 Spreadsheet Exam CH 13 - 1..Costs ALTM...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
    associated with the alternatives are listed below: ALT M ALT N Supplies costs  43,000   43,000  Assembly costs  43,000   56,000  Power costs  26,000   26,000  Inspection costs  19,000   26,000   $131,000   $151,000  Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat All are relevant  $151,000  -  $131,000  =  $20,000  1. Saalfrank Corporation is considering two alternatives that are code-named M and N. Costs b. What is the differential cost between the two alternatives? 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
tives?
Background image of page 2
Store A Store B Total Sales  $400,000   $600,000   $1,000,000  Variable expenses  160,000   420,000   580,000  Contribution margin  240,000   180,000   420,000  Traceable fixed expenses  100,000   200,000   300,000  Store segment margin  140,000   (20,000)  120,000  Common fixed expenses  20,000   30,000   50,000  Net opreating income  $120,000   $(50,000)  $70,000  Due to its poor showing, consideration is being given to closing Store B. Studies show that i is closed, one-fourth of its traceable fixed expenses will continue unchanged. The studies al that closing Store B would result in a 10 percent decrease in sales in Store A. The company common fixed expenses to the stores on the basis of sales dollars. Required: Results of Store A Store B closing Store B Sales  $400,000   $600,000   $(600,000) Variable expenses  160,000   420,000   (420,000) Contribution margin  240,000   180,000  Traceable fixed expenses  100,000   200,000   (200,000) Store segment margin  140,000   (20,000)  20,000  Common fixed expenses  20,000   30,000   (30,000) Net opreating income  $120,000   $(50,000) 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 c
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 if Store B  lso show 
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/29/2011 for the course ACC 311 taught by Professor Hiles during the Spring '11 term at University of Phoenix.

Page1 / 11

~$ACC 331 Mod 6 Spreadsheet Exam CH 13 - 1..Costs ALTM...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online