Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. [urgent] williams products inc. manufactures and s

[URGENT] Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The...

90.2K

Verified Solution

Question

Accounting

[URGENT] Williams Products Inc. manufactures and sells a number of items, including school knapsacks. The company has been experiencing
losses on the knapsacks for some time, as shown by the contribution format income statement below:
*Allocated on the basis of machine-hours.
Allocatedonthebasis of sales dollars.
Discontinuing the knapsacks would not affect sales of other product lines and would have no noticeable effect on the company's total
general factory overhead or total purchasing department expenses.
Requlred:
a. Compute the increase or decrease of net operating income if the Williams Products Inc line is continued or discontinued. (Input all
amounts os positlve except Decreases In Soles, Decreases In Contrlbution Margln, and Net Losses whlch should be Indlcoted by a
mlnus slgn.)
b) Would you recommend that Williams products Inc line be discontinued?
Yes or No?
image

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

Finance
1.2K views

What is the difference between objective and subjective impossibility bin contract performance?

Physics
1.2K views

A  test  rocket  for  Cansat  is  launched  by  accelerating  it  along  a 200m inclined plane at 1.25 m/s^2 starting from rest. The incline rises  at  30  degrees  above  the  horizontal,  and  at  the  instant the rocket  leaves  it,  its  engine  turns  off  and  the  rock et  is  now subjected  only  to  gravity  (free  fall). Along  the  ramp,  gravity  is neglected. a)   Find  the  maximum  height  above  the  ground  that  the  rocket reaches. b)   The  horizontal  position  of  landing  as  measured  from  the bottom of the inclined plane...

General Management
1.2K views

True or False: The UCC equivalent of a common law “option” is a “firm offer.”                            The “mirror image”...

Accounting
1.2K views

Campbell Manufacturing Company began operations in 20X6. Depreciation for the year amounted to $200,000; 30% relates...

Physics
1.2K views

A spherical hollow cavity is made in a lead sphere of radius R such that...

Geometry
1.2K views

Find the measurement indicated in each trapezoid ISOSCELES TRAP Do NOT include units degrees inches...

Algebra
1.2K views

Marcus states that the polynomial expression 3x 4x y 2 is in standard form Ariel...

Accounting
1.2K views

Prepare the appropriate journal for the following transaction entry for each transaction or event. Use...

Accounting
1.2K views

21 Decision is the process of identifying problems and opportunities and then resolving them. Select...

Accounting
1.2K views

REQUIRED Calculate Anne's remuneration for 15 April 2022. INFORMATION (4 marks) The normal wage of...

Accounting
1.2K views

Nickleson Company had an unadjusted cash balance of $9,432 as of May 31. The company's...

Finance
1.2K views

Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well capitalized."...