(Answered) Question - marinette company makes several products

Accounting

Question - Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering that product line. The following information is available regarding its canoe segment.

MARINETTE COMPANY Income Statement - Canoe Segment
Sales		$2,040,000
Variable costs
Direct materials	$430,000
Direct labor	540,000
Variable overhead	260,000
Variable selling and administrative	230,000
Total variable costs		1,460,000
Contribution margin		580,000
Fixed costs
Direct	585,000
Indirect	380,000
Total fixed costs		365,000
Net income		$(385,000)

1. If canoes are distributed, calculate the net income lost or gained.

2. Should management discontinue the manufacturing of canoes?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92419626
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - sometimes a temporary difference will produce

Question - Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe at least one situation that has this effect. How are future deductible amou ...

Question 1 texas co expects sales of 20000 units of s1 in

Question: 1. Texas Co. expects sales of 20,000 units of S1 in September. DX1 is its most popular high performance desktop model. The sales manager is confident that, between October and December, the total sales will hav ...

Question - given2018 pretax accounting income 4000002018

Question - Given 2018 Pretax Accounting Income: $400,000 2018 Municipal Bond Interest Income Included in Pretax Accounting Income: $20,000 2018 Warranty Expense of $70,000 for Accounting Purposes 2018 Actual Warranty Cos ...

Question - on december 31 year 1 day co leased a new

Question - On December 31, year 1, Day Co. leased a new machine from Parr with the following pertinent information: Lease term 8 years Annual rental payable at beginning of each year $60,000 Useful life of machine 10 yea ...

Question - what is the difference between expensing assets

Question - What is the difference between expensing assets such as cement, tools, machinery, etc rather than depreciating certain items. How to correct this on the company's books if they have been expensing everything s ...

Question - the following are reported amounts from ellis

Question - The following are reported amounts from Ellis Company's multiple-step income statement: Cost of merchandise sold $199,840 Merchandise inventory 139,890 Sales 307,750 Sales discounts 5,850 Sales returns 11,690 ...

Question - use the following information for transactions

Question - Use the following information for transactions 18 and 19. You are the SELLER. You sell merchandise on account for $12,000. The merchandise cost you $7,200. The terms are FOB shipping, 2/10, n/30. You receive a ...

Question - dillon corporation manufactures computer

Question - Dillon Corporation manufactures computer monitors. The company uses a job order costing system, using a plant-wide rate for allocating overhead costs. The current cost method allocates overhead on the basis of ...

Question debt financingfind information on the pros and

Question: Debt financing Find information on the pros and cons of debt financing. Address the following questions in your initial post: • Is debt necessary? • Is short term debt better or worse than long term debt? • Doe ...

Question - canberry corporation had net income of 116000

Question - Canberry Corporation had net income of $116,000, beginning total assets of $856,000 and ending total assets of $760,000. Calculate its return on total assets? 738% 15.3% 655% 14.4% 13.6%

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert