e6-10 - Name: Date: Instructor: Course: rd Managerial...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
FileName: 2e1b70e2bb93acd7280ebfe41b7f16038bfa9b0a.xls, Tab: Exercise E6-10, Page 1 of 2, 12/28/2011, 19:01:33 Name: Date: Instructor: Course: Total Sales $1,664,200 $100,000 $1,764,200 Cost of Goods Sold $978,520 $76,500 $1,055,020 Gross Profit $685,680 $23,500 $709,180 Operating Expenses $527,940 $48,000 $575,940 Net Income $157,740 ($24,500) $133,240 In the Erie Division, cost of goods sold is $60,000 variable and $16,500 fixed, and operating expenses are $25,000 variable and $23,000 fixed. None of the Erie Division's fixed costs will be eliminated if the division is discontinued. Instructions: Is Maggie right about eliminating the Erie Division? Prepare a schedule to support your answer. Continue Eliminate Sales Amount Amount Amount Title Title Amount Amount Amount Title Amount Amount Amount Total variable Formula Formula Formula Title Formula Formula Formula Fixed costs Title Amount Amount Amount Title Amount Amount Amount Title Formula Formula Formula Net income (loss) Formula Formula
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

e6-10 - Name: Date: Instructor: Course: rd Managerial...

This preview shows document pages 1 - 2. Sign up to view the full document.

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