Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. slove the last part please hickory's manageme

slove the last part please Hickory's management is deciding whether...

70.2K

Verified Solution

Question

Accounting

slove the last part please
image
Hickory's management is deciding whether to keep or drop the parquet product line. Hickory's parquet flooring product line has a contribution margin of $50,000 (sales of $300,000 less total variable costs of $250,000 ). All variable costs are relevant. Relevant fixed costs associated with this line include 80% of parquet's machine rent and all of parquet's supervision salaries. In addition, assume that dropping the parquet product line would reduce sales of the strip line by 24% and sales of the plank line by 20%. All other information remains the same. Required: 1. If the parquet product line is dropped, what is the contribution margin for the strip line? 1 For the plank line? (.) 2. Which aiternative (keep or drop the parquet product line) is now more cost effective and by how much? bys x

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

Chemistry
1.2K views

6. During the synthesis of a Grignard reagent in diethyl ether solvent, bubbles are observed on...

Biology
1.2K views

Monkey knockouts? ANDi is the first step on the path to developing a knockout monkey that...

Programming
1.2K views

Write code in MIPS ,read tow number from the user that do the following: 1- multiply 2- Dividing 3- sum 4- average 5- minimum 6-...

Operations Management
1.2K views

1.Question 1 The first principle of Lean is to specify value. Who determines value? 1 point Shareholders Sales Management Customers 2.Question 2 What tool...

Advance Math
1.2K views

Let G be a group and let N ? G be a normal subgroup. (i) Define...

Biology
1.2K views

The point of the Deleterious Mutation Hypothesis was that individuals which have a genotype will...

Physics
1.2K views

Nichrome wire of cross sectional radius 0 779 mm is to be used in winding...

Accounting
1.2K views

ssigninents iscussions: rades Question 10 3.25pts 5 imms Corp. is consdering a project that has...

Accounting
1.2K views

McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces...

Accounting
1.2K views

Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages,...

Finance
1.2K views

Emily found a car in the Auto Trader that she wanted to buy for $8595....

Accounting
1.2K views

* Question 7 Swifty Inc. has an overhead rate for machine setups of 5160 per...