1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Irina-Kira [14]
1 year ago
7

Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution fo

rmat income statement follows:
A study indicates that 340,000 of the fixed expenses being charged to Linens are sunk costs or allocated costs that will continue even if the Linens Department is dropped. In addition, the elimination of the Linens Department will result in a 10% decrease in the sales of the Hardware Department.
If the Linens Department is dropped, what will be the effect on the net operating income of the company as a whole?
Business
1 answer:
Dafna1 [17]1 year ago
6 0

For this problem, we are required to calculate the net operating income.

In order to answer the question, we will first calculate the impact of the changes on the Hardware department. Then we will add the remaining fixed costs that are currently charged to Linens that will continue.

To calculate net operating income, subtract operating expenses from the revenue generated by a property. Revenue from real Hardware department estate includes rental income, parking fees, service changes, vending machines, laundry machines, and so on.

Net income, also known as the bottom line, Hardware department indicates a business's profitability. It shows how much profit is left from revenue after accounting for expenses and liabilities. Net income is profit that can be distributed to business owners or shareholders or invested in business growth.

A corporation's positive net income causes an increase in the retained earnings, which is part of stockholders' equity. A net loss will cause a decrease in retained earnings and stockholders' equity.

learn more about Hardware department: brainly.com/question/27803497

#SPJ4

You might be interested in
Using the following information, determine the location quotient for Motor City: employment in motor vehicle manufacturing withi
ValentinkaMS [17]

Answer:

15.7

Explanation:

In this question we have the following information

Employment in Motor Vehicle manufacturing within city = 12643

Total employment in motor city = 560379

Total individual employment = 152750

Total employment = 106201232

We get the location quotient as

(12643/560379)/152750/106201232

0.02256/0.001438

= 15.69

This is approximately

15.7

Therefore the location quotient = 15.7

7 0
3 years ago
What part of the cover letter explains how the applicant's qualifications meet the needs of the company?
weqwewe [10]
Your answer is C Hope that helps
3 0
3 years ago
Read 2 more answers
Calculate the present values for the perpetuity: (1) Annual amount $20000, discount rate 8% (2) Annual amount $10000, discount r
Aleksandr [31]

Answer:

Present value calculator calculates the PV of a single amount. ... of illustration, you would rather receive $10,000 today rather than wait a year. ... This rate-of-return calculator solves for the ROR for one invested amount. ... Enter the calculated present value, the discount rate as the annual interest rate ... advertisement 2 short.

Explanation:

7 0
3 years ago
A firm's operations drive its structure. <br> a. True <br> b. False
Wittaler [7]
True hope this helped
6 0
3 years ago
Consider the following information from the financial statements for Rock Inc. Last Year This Year Accounts Receivable 23,535 29
Nesterboy [21]

Answer:

Rock Inc.

Gross profit ratio:

= 0.70

Explanation:

a) Data and Calculations:

Sales                      $473,864

Cost of Goods Sold 142,263

Gross profit           $331,601

Gross profit ratio = Gross profit/Sales

= $331,601/$473,864

= 0.69978

= 0.70

b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold.  It is the first profit point on the Income Statement.  It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold.  This profit will cover the expenses incurred in running the business for the particular period.

7 0
3 years ago
Other questions:
  • If you have a standard food cost of 38 percent, a product mix of 38 percent, and an actual food cost of 42 percent, what must yo
    12·1 answer
  • Poseidon Co. holds 70% of the common stock of Saturn Co. In the current year, Poseidon report sales of $2,400,000 and cost of go
    14·1 answer
  • According to the University of Michigan studies, leaders who are production oriented are described as emphasizing interpersonal
    11·1 answer
  • In centrally planned economies, the government owns most of the factors of production. select one:
    12·1 answer
  • Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper
    15·1 answer
  • A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessi
    5·1 answer
  • Why is it important for people to be careful to manage their debts?
    11·1 answer
  • Calculate the simple interest and maturity vale. (do not round intermediate calculations. Round your answers to the nearest cent
    12·1 answer
  • a survey of 137 investment managers in a poll revealed the following. 44% of managers classified themselves as bullish or very b
    7·1 answer
  • Lower-level managers are empowered to make decisions in a ______ organization, which can ________ motivation and job satisfactio
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!