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2 years ago

If $25,000 of fixed costs will be eliminated by discontinuing the Sporty line, how will operating income be affected

Business

1 answer:

Alex17521 [72]2 years ago

6 0

When $25,000 of fixed costs will be eliminated by discontinuing, the operating income will increase by $5000.

<h3>How to calculate the operating income?</h3>

From the complete information given, the impact on operating income will be calculated thus:

= Savings fixed cost - Loss on contribution margin

= $25000 - $20000

= $5000

Therefore, the operating income will increase by $5000.

Learn more fixed cost on:

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As discussed in the narrated power point presentation on groups and teams, _____________ is one of the most important advantages

kolbaska11 [484]

Answer: C. Harmony.

Explanation:

Group Harmony is very important in achieving objectives. When there is Harmony in a group that means that people have ACCEPTED their other group members and are working together peacefully with them. To accept a person you must UNDERSTAND them to some extent.

Being in Harmony in a group also creates a form of loyalty to the group as one feels comfortable around other members. This will lead to a COMMITMENT to decisions in other not to betray the harmony of the group.

8 0

3 years ago

On January 1, 2017, Windsor Corporation sold a building that cost $271,010 and that had accumulated depreciation of $101,000 on

Paladinen [302]

Answer:

= $31,538

Explanation:

At what amount should the gain from the sale of the building be reported ?

Book value of the building at January 1, 2017 will be calculated by =

Cost of the building - Depreciation

271,010 - 101,000 = $170,010

Windsor sold the building for 261,010 due o January 1,2020, which is exactly three years after the date it was sold.

To find out the gain or loss, we will calculate the present value of the amount paid to Windsor Corporation at January 01, 2017.

Present value = $\frac{Future Valye}{(1+r)^{2}}$

Note due in 3 years,

PV = $\frac{261,010}{(1.09)^{3} }$ = $201,548

The Present value is greater than the book value of the building at January 1,2017, so we have a gain on sale of the building, which is calculated by:

Gain on sale of building = $201,548 - $170,010

= $31,538

Windsor Corporation will report a gain on sale of building of $31,538.

8 0

3 years ago

In order to retain certain key executives, Smiley Corporation granted them incentive stock options on December 31, 2017. 150,000

Mice21 [21]

Answer:

Check the explanation

Explanation:

Kindly check the attached image below to see the step by step explanation to the question above.

3 0

3 years ago

Risers Inc. reported total assets of $3,200,000 and net income of $255,000 for the current year. Risers determined that inventor

WARRIOR [948]

Answer:

Corrected total assets= $3,230,000

Corrected net income= $216,000

Explanation:

Riser incorporation reported a total assets $3,200,000 and a net income of $255,000 for the Current year

Risers inventory was understated by $69,000 at the beginning of the year and $30,000 at the end of the year

The corrected amount for the total assets can be calculated as follows

= $3,200,000+$30,000

= $3,230,000

The corrected amount for the net income can be calculated as follows

= $255,000-$69,000+$30,000

= $216,000

Hence the corrected amount for total assets and net income for the year is $3,230,000 and $216,000 respectively

4 0

2 years ago

If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities c

Hatshy [7]

If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities curve between x and y would be bowed outward.

The law of increasing possibility fee: As you increase the manufacturing of 1 appropriate, the opportunity fee to provide the additional precise will boom.

First, understand that opportunity price is the fee of the following-high-quality alternative when a decision is made; it's what's given up.

When the economy grows and all other matters continue to be steady, we are able to produce greater, so this will motivate a shift in the manufacturing opportunities to curve outward, or to the proper.

Learn more about production here: brainly.com/question/26460726

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5 0

9 months ago