Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. milwaukee, inc. has three divisions: bud, wise, an

Milwaukee, Inc. has three divisions: Bud, Wise, and Er. The results of May, 2016 are...

80.2K

Verified Solution

Question

Accounting

image
image
Milwaukee, Inc. has three divisions: Bud, Wise, and Er. The results of May, 2016 are presented below Er Total Bud 3,000 ,000 2,000 Wise Units sold $70,000 $50,000 $40,000 $160,000 Revenue Less variable costs Less direct fixed costs Less allocated fixed costs Net income 32,000 26,000 16,000 74,000 14,000 19,000 12,000 45,000 4,000 20,000 $18,000 (5,000)8,000 21,000 6,000 10,000 will continue even if a division is discontinued. Miliwaukee allocates indirect fixed costs based on the number of units to be sold. Since the Wise division has a net loss, Milwaukee feels that it should be discontinued. Milwaukee feels if the division is closed, that sales at the Bud division will increase by 12% and that sales at the Er division will stay the same. (a) Prepare an analysis showing the effect of discontinuing the Wise division Bud Total Less direct fixed costs

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

Advance Math
1.2K views

A tank originally contains 100 gal of fresh water. Then water containing 1 2 lb of salt per gallon...

Physics
1.2K views

4 A certain amount of current when flowing in a properly set tangent galvanometer produces...

Calculus
1.2K views

The graph of the derivative of f is shown below Assume that the domain of...

Calculus
1.2K views

Which of the following functions is not one to one a f x x 2x...

Algebra
1.2K views

5 3 Determine whether each equality det AB det A det B and det A...

Algebra
1.2K views

Which of the following is equivalent to the expression below Select all that apply In...

Accounting
1.2K views

XYZ borrows $200 000 cash on November 1 2013 by signing a 90 day 9%...

Accounting
1.2K views

On March 1, Mena Company borrows $150,000 from High Country Bank by signing a 6-month,...

Accounting
1.2K views

he charter of a corporation provides for the issuance of 100,000 shares of common stock....

Accounting
1.2K views

Calgary Industries is preparing a budgeted income statement for 2018. Predicted sales for the year...

Accounting
1.2K views

Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at...

Accounting
1.2K views

93. How does ethical behavior contribute to the credibility and reliability of financial reporting?