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
Mila [183]
3 years ago
6

Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of Product X is $25 per unit, and va

riable expenses are $19 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $72,000 of the $102,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Multiple
Business
1 answer:
zloy xaker [14]3 years ago
8 0

Answer:

Annual financial disadvantage = $ (669,600)

Explanation:

Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.

The relevant costs of this decision to disconnected includes the following:

  1. The variable cost of making the product = $19 per unit
  2. Sales revenue at a price of $25
  3. Savings in  avoidable fixed costs (102,000-72,000) = 30,000

Annual financial advantage                                

                                                                       $

Lost contribution $(25-19)× 4,300 units =   (85,800)

Saving in fixed cost =                                   <u>  30,000</u>

M<em>onthly net loss                                            </em><em><u> 55,800</u></em>

Annual financial disadvantage

Monthly net loss × 12 months

=  (55,800)  × 12

=  $ (669,600)

You might be interested in
Nascar redirected its marketing efforts when a survey indicated that almost 50 percent of its fans were female. this is an examp
olga nikolaevna [1]
This would not be psychographic segmentation, as segmenting by gender would be demographic
4 0
3 years ago
What are the 4 tools used by the federal reserve to control the money supply ?
Mandarinka [93]
The Federal Reserve's three instruments of monetary policy are open market operations, the discount rate and reserve requirements.

5 0
3 years ago
Which individual would deserve credit for the success of american imperialist policies?
Leviafan [203]

Answer:

American imperialism

Explanation:

is a term that refers to the economic,military and cultural influence of the United States on other countries.

8 0
3 years ago
Which two management perspectives typically consider an organization to be a closed system? Check all that apply.
Nookie1986 [14]

Answer:

Classical management viewpoint

management science perspective

Explanation:

As the name suggests the closed system refers to a system in which the company is operating at their own without any influence to be done from the outside world

The classical management theory refers to the theory that depends on the trust that the employees have two needs i.e. physical and economical. Neither they have social needs, nor job satisfaction, etc

Management science perspective refers to a solving a problem and take the decisions that are beneficial for an organization

Therefore these two should be considered as a closed system

3 0
3 years ago
What efforts did Woodrow Wilson make to try to regulate the economy.
Llana [10]
Woodrow Wilson was really one of the first major economically liberal presidents in the sense that he was proactive in fighting trusts, inflation, and corruption in big business.
6 0
3 years ago
Read 2 more answers
Other questions:
  • What are the two most popular ways people make networking contacts? 
    8·2 answers
  • A manager is requested to help whenever there is a breakdown in a firm's production line. Which primary skills does this manager
    12·1 answer
  • A clothing manufacturer produces clothing in five locations in the U. S. In a move to vertical integration, the company is plann
    15·1 answer
  • Novak Corp. reported net income of $178,150 for 2022. Novak Corp. also reported depreciation expense of $36,430 and a loss of $5
    12·1 answer
  • You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spot
    12·1 answer
  • 1. Jim is beginning his research on franchise businesses in order to find one that meets his needsA quick, easy way get general
    11·1 answer
  • Although the Chen Company's milling machine is old, it is still in relatively good working order and would last for another 10 y
    12·1 answer
  • The zero coupon bonds of Mark Enterprises have a market price of $394.47, a face value of $1,000, and a yield to maturity of 6.8
    11·1 answer
  • Wage/price controls allow us to
    9·1 answer
  • Evaluate the impact that the 5 Total Quality Management (TQM) elements have on Woolworths, as a large company.​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!