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

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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

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

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