Nimoy Company makes three models of phasers. Information on the three products i
ID: 2484469 • Letter: N
Question
Nimoy Company makes three models of phasers. Information on the three products is given below.
142,390
200,940
139,390
121,680
228,066
91,378
$35,380
$70,084
$(31,128)
Fixed expenses consist of $307,400 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29,461 (Stunner), $74,366 (Double-Set), and $29,897 (Mega-Power). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out.
Mr. Spock, an executive with the company, feels the Mega-Power line should be discontinued to increase the company's net income.
Instructions
Compute current net income for Nimoy Company.
$
$
Double-set net income
$
Total net income
$
Stunner Double-Set Mega-Power Sales $299,450 $499,090 $199,640 Variable expenses142,390
200,940
139,390
Contribution margin 157,060 298,150 60,250 Fixed expenses121,680
228,066
91,378
Net income$35,380
$70,084
$(31,128)
Explanation / Answer
Nimoy Company Product wise profitability statement Amt in $ Products Stunner Double set Mega Power Total Sales 299,450 499,090 199,640 998,180 Variable Expenses 142,390 200,940 139,390 482,720 Contribution Margin 157,060 298,150 60,250 515,460 Traceable Fixed Expenses 29,461 74,366 29,897 133,724 Product Segment Margin 127,599 223,784 30,353 381,736 Common Fixed costs 92,219 153,700 61,481 307,400 Net Income 35,380 70,084 (31,128) 74,336 a Current Net Income for Nimoy $ 74,336 Segment Income Net income considering common fixed costs b Stunner net income 127,599 35,380 Double set net income 223,784 70,084 Mega power net income 30,353 (31,128) Total Net income 381,736 74,336
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.