A Home - myPen X D2L Discussions - S X D2L PPT Notes - Ch x CH 3 EXAMPLE X Mail - Matthew X M Question 8 - E X Connect - Gett x + Q https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fne... A ☆ [] EXAM #3 - PART II (37 PTS - 70 MIN) i Saved Help Save & Exit Submi 00 5 points Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Sales Variable costs 00:17:23 Contribution margin Fixed costs allocated to each product line Operating profit (loss) Original $33,000 23,100 $ 9,900 4,200 $ 5,700 Strawberry $42,300 38,070 $ 4,230 5,500 $(1,270) Orange $51,000 40,800 $10,200 7,100 $ 3,100 a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Required:
A Home - myPen X D2L Discussions - S X D2L PPT Notes - Ch x CH 3 EXAMPLE X Mail - Matthew X M Question 8 - E X Connect - Gett x + Q https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fne... A ☆ [] EXAM #3 - PART II (37 PTS - 70 MIN) i Saved Help Save & Exit Submi 00 5 points Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent. Segmented income statements appear as follows: Product Sales Variable costs 00:17:23 Contribution margin Fixed costs allocated to each product line Operating profit (loss) Original $33,000 23,100 $ 9,900 4,200 $ 5,700 Strawberry $42,300 38,070 $ 4,230 5,500 $(1,270) Orange $51,000 40,800 $10,200 7,100 $ 3,100 a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if there is no effect.) Required:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Connect - Gett x +
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EXAM #3 - PART II (37 PTS - 70 MIN) i
Saved
Help
Save & Exit
Submi
00
5
points
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75
percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor.
If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's
total fixed costs would be reduced by 15 percent.
Segmented income statements appear as follows:
Product
Sales
Variable costs
00:17:23
Contribution margin
Fixed costs allocated to each product line
Operating profit (loss)
Original
$33,000
23,100
$ 9,900
4,200
$ 5,700
Strawberry
$42,300
38,070
$ 4,230
5,500
$(1,270)
Orange
$51,000
40,800
$10,200
7,100
$ 3,100
a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if
there is no effect.)
Required:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c8bd1db-d53f-4635-90b0-910ede057523%2F6da60db3-d722-494e-b0c5-f7f960898172%2F727q8tk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A
Home - myPen X
D2L Discussions - S X
D2L PPT Notes - Ch x
CH 3 EXAMPLE X Mail - Matthew X
M Question 8 - E X
Connect - Gett x +
Q
https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fne... A
☆
[]
EXAM #3 - PART II (37 PTS - 70 MIN) i
Saved
Help
Save & Exit
Submi
00
5
points
Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. The company is currently operating at 75
percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor.
If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's
total fixed costs would be reduced by 15 percent.
Segmented income statements appear as follows:
Product
Sales
Variable costs
00:17:23
Contribution margin
Fixed costs allocated to each product line
Operating profit (loss)
Original
$33,000
23,100
$ 9,900
4,200
$ 5,700
Strawberry
$42,300
38,070
$ 4,230
5,500
$(1,270)
Orange
$51,000
40,800
$10,200
7,100
$ 3,100
a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping Status Quo as the base. Select "none" if
there is no effect.)
Required:
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