Lusk Corporation produces and sells 14,700 units of Product X each month. The selling price of Product X is $29 per unit, and variable expenses are $23 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $73,000 of the $102,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the monthly financial advantage (disadvantage) for the company of eliminating this product should be:

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $35,000 and $70,000 in annual fixed costs. Of the fixed costs, $17,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

The management of Furrow Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year appear below: Sales - $ 960,000 Variable expenses - $ 400,000 Fixed manufacturing expenses - $ 382,000 Fixed selling and administrative expenses - $ 262,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $257,000 of the fixed manufacturing expenses and $218,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:

WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows: Particulars - Product X - Product Y - Product Z Units produced - 2,200 - 2,700 - 3,700 Per unit sales value at split-off -$ 17.00 -$ 23.00 -$ 22.00 Added processing costs per unit -$ 1.00 -$ 3.00 - $ 3.00 Per unit sales value if processed further - $ 25.00 - $ 25.00 - $ 30.00 The cost of the joint raw material input is $85,000. Which of the products should be processed beyond the split-off point? Choice - Product X -Product Y - Product Z A) yes yes no B) yes no yes C) no yes no D) no yes yes

Two alternatives, code-named X and Y, are under consideration at Guyer Corporation. Costs associated with the alternatives are listed below. Particulars - Alternative X - Alternative Y Materials costs - $ 56,000 - $ 81,800 Processing costs - $ 59,300 -$ 59,300 Equipment rental -$ 22,800 -$ 22,800 Occupancy costs -$ 21,400 -$ 32,000 What is the financial advantage (disadvantage) of Alternative Y over Alternative X?

The Tolar Corporation has 500 obsolete desk calculators that are carried in inventory at a total cost of $720,000. If these calculators are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the calculators can be sold in their present condition for $50,000. Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?

The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below: Sales $ 924,000 Variable expenses $ 403,000 Fixed manufacturing expenses $ 338,000 Fixed selling and administrative expenses $ 245,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $205,000 of the fixed manufacturing expenses and $116,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. According to the company's accounting system, what is the net operating income (loss) earned by product D74F? Include all costs in this calculation—whether relevant or not.

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $59 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $29 or processed further for $27 to make the end product industrial fiber that is sold for $75. The beet juice can be sold as is for $50 or processed further for $31 to make the end product refined sugar that is sold for $75. What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar rather than not processing that batch at all?