question 1

SALES
VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
OPERATING INCOME OR LOSS

FROM THE ABOVE CALCULATIONS THE COMPANY OBSERVED CONCLUED THAT IF THE DECREASE OCCUR IN THE INCOME OF

SALES
VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
OPEREATING INCOME OR LOSS

BEFORE DROPPING OF ELECTRONICS DEPPT THE NET OPERATING INCOME WAS 30000 WHICH IS DECREASE AFTER DROPPIN

QUESTION 2

SALES
VARIABLE EXPENSES
VARIABLE MANUFACTURING EXPENSE
SALES COMISSION
SHIPPING
TOTAL VARIABLE EXPENSE
CONTRIBUTION
FIX EXPENSE
ADVERTISING
DEPRECIATION OF EQUIPMENT (NO RESALE VALUE)
GENERAL FACTORY OVERHEAD
INSURANCE ON SWEATER VEST INVENTORY
PURCHASING DEPPT EXPENSE
SALARY ON SWEATER VEST MANAGER
TOTAL FIX EXPENSES
NET OPERATING LOSS OR INCOME
WE WILL NOT STOP SWEATER PRODUCT LINE BECAUSE BY STOPING THAT WE WILL INCUR MORE 9000 LOSS.
 HOUSE WEAR HAERDWARES ELECTRONICS
$ 150,000.00 $ 220,000.00 $ 200,000.00
$ 60,000.00 $ 100,000.00 $ 140,000.00
$ 90,000.00 $ 120,000.00 $ 60,000.00
$ 50,000.00 $ 100,000.00 $ 90,000.00
$ 40,000.00 $ 20,000.00 $ (30,000.00)

HAT IF THE DECREASE OCCUR IN THE INCOME OF ELECTRONICS DEPARTMENT THE OTHER DEPPTS COULD FACE A DECREASE OF 10% IN S

HOUSE WEAR HEARD WEAR ELECTRONICS

$ 135,000.00 $ 198,000.00 $ -
$ 54,000.00 $ 90,000.00 $ -
$ 81,000.00 $ 108,000.00 $ -
$ 50,000.00 $ 100,000.00 $ (20,000.00)
$ 31,000.00 $ 8,000.00 $ (20,000.00)

WAS 30000 WHICH IS DECREASE AFTER DROPPING ELECTRONICS DEPPT. SO FROM THE ABOVE CALCULATIONS IT IS CONCLUDED THAT T

$ 700,000.00 $ -
$ -
$ 390,000.00 $ -
$ 65,000.00 $ -
$ 33,000.00 $ -
$ 488,000.00 $ -
$ 212,000.00 $ -

$ 61,000.00 $ -
$ 20,000.00 $ 20,000.00
$ 65,000.00 $ 65,000.00
$ 97,000.00 $ -
$ 50,000.00 $ 50,000.00
$ 45,000.00 $ -
$ 338,000.00 $ 135,000.00
$ (126,000.00) $ (135,000.00)

DIFFERENCE $ (9,000.00)
WE WILL INCUR MORE 9000 LOSS.
 TOTAL
$ 570,000.00
$ 300,000.00
$ 270,000.00
$ 240,000.00
$ 30,000.00

CE A DECREASE OF 10% IN SALES AND FOOT TRAFFIC.

TOTAL
$ 333,000.00
$ 144,000.00
$ 189,000.00
$ 130,000.00
$ 19,000.00

NS IT IS CONCLUDED THAT THE ELECTRONIC DEPPT SHOULD BE CONTINUED.