Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. a company produces two kinds of hammers: one wi

1. A company produces two kinds of hammers: one with longer handles and one with...

60.1K

Verified Solution

Question

Accounting

image
1. A company produces two kinds of hammers: one with longer handles and one with shorter handles. The longer hammer uses better materials and has a better design for hand support. During the past year, 200,000 shorter hammers and 50,000 longer hammers were produced and sold. Fixed costs amount to $1,000,000. If the shorter hammers were dropped from production, $360,000 of the fixed costs would be avoided. If the longer hammers were dropped, $180,000 of the fixed costs would be avoided. Shorter Longer Variable expenses/unit $80 $172 Sales price/unit $88 $180 The contribution margin of the shorter and longer hammers, respectively is a. 5400,000/81 600,000 c. $1,600,000/88,600,000 b. $1,240,000/220,000 d. 1,600,000/$400,000 2. If the company stops producing the longer hammer, what will be the effect on the company's income? a. Decrease by $400,000 c. Decrease by $1,600,000 6. Decrease by $220,000 d. Decrease by $1,240,000 3. If the company stops producing the shorter hammer, what will be the effect on the company's income? a. Decrease by $400,000 c. Decrease by S1,600,000 6. Decrease by $220,000. Decrease by $1.240,000

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

Q

Summarize the article and how does it relate to time value of money The finance department and...

Finance
Q

1.  The gestation period (length of pregnancy) for male babies born in New York is normally distributed...

Basic Math
Q

In a constant-pressure calorimeter, 60.0 mL of 0.310 M Ba(OH)2 was added to 60.0 mL of...

Chemistry
Q

CHAPTER 4: Modification of Mendelian Ratios ï‚· Know the definition of: Wild-type Allele and Null Allele ï‚·...

Biology
Q

-Which organs produce digestive enzymes? Where does digestion occur? Where does digestion start? Where does most...

Medical Sciences
Q

22 A hollow double concave lens is made of very thin transparent material It can...

Physics
Q

A particle of mass m is driven by a machine that delivers a constant power...

Physics
Q

7 P A 0 25 P B 0 35 P A and B A 0...

Statistics
Q

What kind of data should the input file for a call to source contain OR...

Statistics
Q

We have a matrix a find a, b, c such that the matrix is a...

Algebra
Q

Christmas Anytime issues $740,000 of 6% bonds, due in 15 years, with interest payable semiannually...

Accounting
Q

The following information shows last years quality-related costs for the Madrigal Company: ...

Accounting