BRIEF EXERCISE-3

BRIEF EXERCISE-3
TOTAL SALES
TOTAL VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
NET INCOME

EFFECT ON INCOME IF THE PORTLAND OFFICE IS ELIMINATED AND HALF OF ITS FIXED COST ARE AVOID
TOTAL SALES
TOTAL VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
NET INCOME

NET INCOME DECREASED BY RS 1000000 WHEN PORTLAND OFFICE IS ELIMINATED

 ₹ 4,500,000.00
₹ 2,000,000.00
₹ 2,500,000.00
₹ 1,000,000.00
₹ 1,500,000.00

ED COST ARE AVOIDED

₹ 2,500,000.00
₹ 1,250,000.00
₹ 1,250,000.00
₹ 750,000.00
₹ 500,000.00
₹ 1,000,000.00
EXERCISE-14

EXERCISE-15
FIXED COST ALLOCATED TO PRODUCT C ARE NOT AVOIDABLE AND PRODUCT LINE C IS DROPPED
TOTAL SALES
TOTAL VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
NET INCOME
NET INCOME WHEN PRODUCT C IS INCLUDED
NET INCOME REDUCED MORE WHEN PRODUCT C IS NOT INCLUDED

750000 OF FIXED COST ALLOCATED TO THE PAINTED ROCKERS ARE AVOIDABLE AND COMPANY DROPS
TOTAL SALES
TOTAL VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
NET INCOME
NET INCOME WHEN PRODUCT C IS INCLUDED
IF PAINTEDPRODUCT IS AVOIDED AND THE FIXED COST IS REDUCED BY RS 750000,THE NET LOSS WILL N
CT LINE C IS DROPPED
₹ 2,000,000.00
₹ 1,250,000.00
₹ 750,000.00
₹ 2,500,000.00
-₹ 1,750,000.00
-₹ 1,000,000.00

BLE AND COMPANY DROPS PAINTED ROCKERS FROM ITS PRODUCT LINE
₹ 2,000,000.00
₹ 1,250,000.00
₹ 750,000.00
₹ 1,750,000.00
-₹ 1,000,000.00
-₹ 1,000,000.00
50000,THE NET LOSS WILL NEITHER INCREASE NOR DECREASE AND REMAINS THE SAME