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
vagabundo [1.1K]
3 years ago
15

Suppose that if the Doombug toy is dropped, the production and sale of other Draper toys would increase so as to generate a $16,

000 increase in the contribution margin received from these other toys. If all other conditions are the same, the change in annual operating income from discontinuing the production and sale of Doombugs would be:
A) $6,000 decrease
B) $14,000 increase
C) $2,000 decrease
D) $28,000 increase
Business
1 answer:
Slav-nsk [51]3 years ago
5 0

Answer:

The correct option is A

Explanation:

Contribution Margin = Sales - Variable expense

                                  = $150,000 - $120,000

                                  = $30,000

Doombug's Profit Margin = Avoidable fixed expenses -  Contribution Margin

                                          = $8,000 - $30,000

                                          = ($22,000)

Increase or Decrease in net operating income = Additional contribution margin - Doombug's Profit Margin

= $16,000 - ($22,000)

= ($6,000)

Therefore, there is decrease in net operating income of Doombug. So, there is decrease of $6,000.

You might be interested in
"The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus th
Ivahew [28]

Answer:

Leased Fee Interest

Explanation:

Leased Fee Interest refers to the right of the lessor to lease his property to a tenant and earn rental income in addition to the value of the asset which is reverted back to the lessor upon expiry i.e reversionary right.

The total of leased rental payments and reversionary value is termed as Leased Fee Interest.

A lease is a contract wherein one party i.e the lessor agrees to lend the asset to other party i.e the lessee in exchange of periodic payments in the form of lease rentals usually without transferring the ownership of the asset.  

5 0
3 years ago
Online retailers lose approximately 25% of their customers every year. Unfortunately, due to the highly competitive camping gear
suter [353]

Answer:

CLV =  [(GC * r) / (1 + i - r)] - AC]

Explanation:

CLV is the customer lifetime value which is the calculation of net profit during the tenure of relationship with the clients and customers.

The formula for CLV calculation is :

CLV = [(GC * r) / (1 + i - r)] - AC]

Where,

GC is annual gross contribution,

r is retention rate of customers

i is discount rate

AC is Acquisition cost

3 0
3 years ago
A company purchases shipments of machine components and uses this acceptance sampling plan: Randomly select and test 26 componen
Inessa [10]

Answer: 0.7973

Explanation:

Binomial probability formula :-

P(x)=^nC_x\ p^x(1-p)^{n-x}, where P(x) is the probability of getting success in x trials , p is the probability of success in one trial and n is the number of trials.

Given : The probability of getting a defect components : 0.06

If randomly select and test 26 components , then the probability that this whole shipment will be accepted will be :-

P(x

Hence, the  probability that this whole shipment will be accepted = 0.7973

7 0
3 years ago
A nation's capital stock was valued at $300 billion at the start of the year and $350 billion at the end. Consumption of private
Alekssandra [29.7K]

Answer:

Gross investment will be equal to $175 billion

Explanation:

We have given nation's capital stock at the start = $200 billion

And capital stock at the end = $350 billion

Consumption of private fixed capital in the year = $25 billion

We have to find the gross investment

Gross investment is equal to

Gross investment =  Capital stock at the end of the year + consumption of private fixed capital - Capital stock at the starting of the year

= $350+$25-$200 = $175

So gross investment will be equal to $175 billion

4 0
3 years ago
The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with _____.
netineya [11]

The cash operating cycle for a merchandiser begins with cash purchases of merchandise and ends with receipt of cash.

<h3><u>What is a merchandise?</u></h3>
  • Any form of items, including those used for personal or professional purposes, as well as goods sold to the general public (retail) or other enterprises, are referred to as merchandise (wholesale).
  • 'Freebies', or promotional things like the bespoke drink bottles in this example that are given away or not charged for, can also be referred to as merchandise.
  • Calendars, magnets, wall art, stationery, greeting cards, textiles, badges, and a wide variety of other goods may be included in this category.
  • A T-shirt with a slogan or logo that a political party distributes to voters during an election campaign or a calendar with a logo that a supplier offers its clients at the end of each year are two examples of freebie products.

Buying merchandise can be done with cash or on credit. The accounts involved in the transaction are the purchases account and the cash account if goods are paid for in cash. It debits the purchases account and credits the cash account.

Know more about Merchandise with the help of the given link:

brainly.com/question/15546663

#SPJ4

8 0
1 year ago
Other questions:
  • Savings account A and savings account B both offer APRs of 6%, but savings account A compounds interest semiannually, while savi
    15·1 answer
  • Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket c
    14·1 answer
  • Market failure occurs when A. the market system fails to allocate resources to each individual according to their needs. B. the
    8·1 answer
  • Dorothy bakes various items and supplies them to different patisseries. Friendly Neighborhood Baker has placed an order for 50 c
    15·1 answer
  • A retailer in lincoln, nebraska, who wants to open a store that will sell surfboards and surfing accessories, finds that the loc
    10·1 answer
  • Jennifer is divorced and files a head of household tax return claiming her children, ages 4,7, and 17, as dependents. Her adjust
    6·1 answer
  • You receive a memo that reads as follows: "In recent months, our customer evaluations have dropped, and our sales have decreased
    14·1 answer
  • Latasha's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Latasha's very tiny kitchen ha
    8·1 answer
  • The purchase of new car is included in: investment expenditure consumption expenditure on services consumption expenditure on no
    11·1 answer
  • In economics, the demand for a good refers to the amount of the good that people:_______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!