The management of Birkley Corporation is considering droppin…

The management of Birkley Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year appear below: Sales $ 930,000 Variable expenses $ 378,000 Fixed manufacturing expenses $ 360,000 Fixed selling and administrative expenses $ 240,000 In the company’s accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $213,000 of the fixed manufacturing expenses and $174,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be: 

The Menagerie Corporation has two products, QI and VH, that…

The Menagerie Corporation has two products, QI and VH, that emerge from a joint process. Product QI has been allocated $26,300 of the total joint costs of $47,000. A total of 2,100 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $10 per unit, or it can be processed further for an additional total cost of $10,100 and then sold for $12 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?  

Equine Solutions Incorporated has some material that origina…

Equine Solutions Incorporated has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,400. What would be the financial advantage (disadvantage) of reworking and selling the material rather than selling it as is as scrap?