Acompany has three product lines, one of which reflects the following results: sales $215000 variable expenses 125000 contribution margin 9 fixed expenses 13 net loss $ (4) if this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. if management decides to eliminate this product line, the company’s net income will

Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

Todd and jim learned that in building a business plan, it was important for them to: