Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. licnep ltd. has three major product lines, soda, j

Licnep Ltd. has three major product lines, soda, juice and ice cream. Licnep is considering...

60.1K

Verified Solution

Question

Accounting

Licnep Ltd. has three major product lines, soda, juice and ice cream. Licnep is considering discontinuing producing ice cream because the divisional income statement indicates it is being sold at a loss. The most recent annual income statement is outlined below: have t Soda Juice Ice Cream (000s) (000s) , Sales (000s) $48.330 $44.980 $26,230 Variable costs Fixed costs 16,500 19.600 12,700 21,800 24,400 18,300 Operating income $10,030 $980 ($4,770) The fixed costs include fixed costs directly attributable to each product line as well as allocated common costs. The portion of directly attributable fixed costs included in total fixed costs is 40% for soda, 75% for juice and 55% for ice cream.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

What are the 2 basic type of communication within bcells

Accounting
1.2K views

What are the risks vs. possible returns in a leasing cash flow?

Basic Math
1.2K views

A company is making a new label for one of their containers. The container is...

Basic Math
1.2K views

Given the equation y = 2 sin(3(x + 6)) + 7The amplitude is:The period is:The...

Statistics
1.2K views

World population is about P 7 68 1 0103 with P in billions and t...

Accounting
1.2K views

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards...

Accounting
1.2K views

Your company fixes the inter-divisional prices for its products on the basis of

Accounting
1.2K views

A stock has an average return of 14% and is currently selling for $279 per...

Accounting
1.2K views

Chester began depreciating the building over the newly revised total life of 34 years and...

Accounting
1.2K views

calculate cost of goods sold, gross margin, and ending inventory using i. FIFO...

Accounting
1.2K views

Tax for the year $500,000 Property Tax $1,000,000 Interest expense $15,000...

Finance
1.2K views

Today is December 31, 2017. Use the following information that applies to Samppel Corporation to...