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Mr Morgan Henry, Accountant for Black & Logan Co

Question 124

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Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data:
Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
The following additional information is available: Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
The company's total depreciation would not be affected by dropping C. Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
The supervisor's salary is avoidable. Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Mr. Morgan Henry, accountant for Black & Logan Co. Inc., has prepared the following product-line income data: The following additional information is available: The factory rent of $1,500 assigned to Product C is avoidable if the product were dropped. The company's total depreciation would not be affected by dropping C. Eliminating Product C will reduce the monthly utility bill from $1,500 to $800. The supervisor's salary is avoidable. If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,000 to $2,000. Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000. Required: Prepare an analysis showing whether Product C should be eliminated.
Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,000.
Required:
Prepare an analysis showing whether Product C should be eliminated.

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