Multiple Cholce$88,300 decrease$92,000 decrease$43,000 decrease$43,000 increase$230,000 decrease Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $95,000 as shown below.SegmentIncome(Loss)SalesVariable costs1,320,0001,185,000Contribution margin135,000230,000Fixed costsIncome (loss)$ (95,000)If the Small Tools Division is dropped, all of its variable costs are avoidable, and $92,000 of its fixed costs are avoidable. The impact on Carns'Division would be:Multiple Choice$88,300 decrease$92,000 decrease$43,000 decreasearease

Avoidable fixed costs are relevant fixed costs because they wont be incurred in case of no…

Carns Company Is considering eliminating Its Small Tools Division, which reported a loss for the prior year of $95 000 as shown below. Segment Income (Loss) Sales %24 1,320,000 Variable Costs 1,185,000 135,000 230,000 Contribution margin Fixed costs Income (loss) $ (95,000) the Small Tools Division is dropped, all of its variable costs are avoidable, and $92,000 of Its fixed costs are avoidable. The impact ivision would be: Multiple Choice $88,300 decrease $92,000 decrease $43,000 decrease

Carns Company Is considering eliminating Its Small Tools Division, which reported a loss for the prior year of $95 000 as shown below. Segment Income (Loss) Sales %24 1,320,000 Variable Costs 1,185,000 135,000 230,000 Contribution margin Fixed costs Income (loss) $ (95,000) the Small Tools Division is dropped, all of its variable costs are avoidable, and $92,000 of Its fixed costs are avoidable. The impact ivision would be: Multiple Choice $88,300 decrease $92,000 decrease $43,000 decrease

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

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