ew History Bookmarks Window Help adiso Pol.. Sakal @ PC FINANG Kimmel, Accountin

Question

ew History Bookmarks Window Help adiso Pol.. Sakal @ PC FINANG Kimmel, Accounting, 6e Gradebk ORION Downloa dable eTextbook :13 PM/Remaining: 19 min Multiple Choice Question 150 condensed segmented income statement for a recent period follows Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A Wood Aluminum Hacd Rubber Toral $110000 45000 55000 $410000 Caneribution20000 Fixed expenses expenses 97000 132000 35000 Income goss)555000 Assume none of the fixed expenses for the be total net income f the line is droppedt total hard rubber avoidable. What will $50000 150000 $80000 $58000 Question Attempte: eed LA

Explanation / Answer

Unavoidable cost are that cost, if a production line is closed that fixed cost will also to be incurred. In this case if hard rubber production line is closed, fixed cost of hard rubber line will have to be incurred.

So profit in this case will be as follows:

Wood Aluminium Total Contribution

130000 60000 190000

Less: Fixed Cost (132000)

Profit 58000

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