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32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: SENT a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Show Transcribed Text Tremaine Inc. has three product lines: A, B, and C. A B Sales Variable costs Contribution margin Fixed costs Net income a. $10,000 b. $20,000 c. $30,000 d. $40,000 $50,000 30,000 20,000 23.000 $ (3,000) - Show Transcribed Text O S $85,000 30,000 55,000 25,000 $30,000 30. Management is considering dropping product line A. In order for the dropping of product line A to NOT effect overall company net income, product line A's avoidable fixed costs (DTFC) should be equal to: a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by $5,000, d. Decrease net income by $5,500. e. Decrease net income by $6,000. C $90,000 44,000 46,000 18,000 $28,000 Total $225,000 104,000 121,000 66,000 $ 55,000 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would:

32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: SENT a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Show Transcribed Text Tremaine Inc. has three product lines: A, B, and C. A B Sales Variable costs Contribution margin Fixed costs Net income a. $10,000 b. $20,000 c. $30,000 d. $40,000 $50,000 30,000 20,000 23.000 $ (3,000) - Show Transcribed Text O S $85,000 30,000 55,000 25,000 $30,000 30. Management is considering dropping product line A. In order for the dropping of product line A to NOT effect overall company net income, product line A's avoidable fixed costs (DTFC) should be equal to: a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by $5,000, d. Decrease net income by $5,500. e. Decrease net income by $6,000. C $90,000 44,000 46,000 18,000 $28,000 Total $225,000 104,000 121,000 66,000 $ 55,000 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would:

Survey of Accounting (Accounting I)
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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URGENT Show Transcribed Text wwwwww 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Sictions: On Sales Variable costs Contribution margin Fixed costs Net income Tremaine Inc. has three product lines: A, B, and C. A B a. $10,000 b. $20,000 c. $30,000 d. $40,000 Show Transcribed Text $50,000 30,000 20,000 23.000 $ (3,000) J Accessibility: Investigate C S a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. $85,000 30,000 55,000 25,000 $30,000 30. Management is considering dropping product line A. In order for the dropping of product line A to NOT effect overall company net income, product line A's avoidable fixed costs (DTFC) should be equal to: C $90,000 44,000 46,000 18,000 $28,000 Total 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: $225,000 104,000 121,000 66,000 $ 55,000 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: D
Transcribed Image Text:URGENT Show Transcribed Text wwwwww 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: a. Decrease net income by $4.000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. Sictions: On Sales Variable costs Contribution margin Fixed costs Net income Tremaine Inc. has three product lines: A, B, and C. A B a. $10,000 b. $20,000 c. $30,000 d. $40,000 Show Transcribed Text $50,000 30,000 20,000 23.000 $ (3,000) J Accessibility: Investigate C S a. Decrease net income by $5,000 b. Decrease net income by $10,000. c. Decrease net income by $15,000. d. Decrease net income by $20,000. e. Decrease net income by $25,000. a. Decrease net income by $4,000 b. Decrease net income by $4,500. c. Decrease net income by $5,000. d. Decrease net income by $5,500. e. Decrease net income by $6,000. $85,000 30,000 55,000 25,000 $30,000 30. Management is considering dropping product line A. In order for the dropping of product line A to NOT effect overall company net income, product line A's avoidable fixed costs (DTFC) should be equal to: C $90,000 44,000 46,000 18,000 $28,000 Total 31. Management is considering dropping product line B. If it is discontinued, (1) $4,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the sales of Product A would increase by 70%. The discontinuation of product line B would: $225,000 104,000 121,000 66,000 $ 55,000 32. Management is considering dropping product line C. If it is discontinued, (1) $3,000 of its fixed costs are unavoidable fixed costs (common FC) and (2) the selling price of Product B would increase by 30%. The discontinuation of product line C would: D
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