•TCC Furniture Makers makes chairs and tables. With the following data should TCC discontinue the table division? Chair Division Table Division Sales Revenue 1,020,000 600,000 COGS 200,000 500,000 Contribution Margin 800,000 100,000 The total fixed cost is 690,000. One third of the fixed cost can be eliminated if the table division is discontinued. O No, Discontinuing the division is lower net income by 600,000 O Yes, Discontinuing the division will increase net income by 130,000 O No, Discontinuing the division will increase net income by 100,000
•TCC Furniture Makers makes chairs and tables. With the following data should TCC discontinue the table division? Chair Division Table Division Sales Revenue 1,020,000 600,000 COGS 200,000 500,000 Contribution Margin 800,000 100,000 The total fixed cost is 690,000. One third of the fixed cost can be eliminated if the table division is discontinued. O No, Discontinuing the division is lower net income by 600,000 O Yes, Discontinuing the division will increase net income by 130,000 O No, Discontinuing the division will increase net income by 100,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...
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Question
![•TCC Furniture Makers makes chairs and tables. With the following data should TCC
discontinue the table division?
Chair Division
Table Division
Sales Revenue
1,020,000
600,000
COGS
200,000
500,000
Contribution Margin
800,000
100,000
The total fixed cost is 690,000. One third of the fixed cost can be eliminated if the table
division is discontinued.
O No, Discontinuing the division is lower net income by 600,000
O Yes, Discontinuing the division will increase net income by 130,000
O No, Discontinuing the division will increase net income by 100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F281699e1-615e-4bc3-996e-0674b8b7f903%2F33ec202a-5440-49fa-b298-f180243ad9aa%2Fmv45fhq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:•TCC Furniture Makers makes chairs and tables. With the following data should TCC
discontinue the table division?
Chair Division
Table Division
Sales Revenue
1,020,000
600,000
COGS
200,000
500,000
Contribution Margin
800,000
100,000
The total fixed cost is 690,000. One third of the fixed cost can be eliminated if the table
division is discontinued.
O No, Discontinuing the division is lower net income by 600,000
O Yes, Discontinuing the division will increase net income by 130,000
O No, Discontinuing the division will increase net income by 100,000
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