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velikii [3]
3 years ago
14

A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year:

Sales $12,750,000 Cost of goods sold 8,500,000 Gross profit $ 4,250,000 Operating expenses 6,000,000 Loss from operations $ (1,750,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss.

Business
1 answer:
uranmaximum [27]3 years ago
8 0

Answer:

Explanation:

the fruit cola should  be discontinued as it has decreased the net income by$1275000

check the attached file bellow for further explanation

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Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe
katrin [286]

Answer:

2.9652%

Explanation:

to determine the cost of debt we must use the FMV of the bonds plus the YTM:

first bond:

FMV = 1.09 x $1,000 = $1,090 x 3,600 bonds = $3,924,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {17.5 + [(1000 - 1090)/16]} / [(1000 + 1090)/2] = (17.5 - 5.625) / 1045 = 1.136% x 2 = 2.27% annual

second bond:

FMV = 0.95 x $2,000 = $1,900 x 3,950 bonds = $7,505,000

YTM = {C + [(F - P)/n]} / [(F + P)/2] = {59.4 + [(2000 - 1900)/42]} / [(2000 + 1900)/2] = (59.4 + 2.38) / 1950 = 3.168% x 2 = 6.34% annual

total debt = $3,924,000 + $7,505,000 = $11,429,000

weighted average after tax cost of debt:

{($3,924,000/$11,429,000 x 2.27%) + ($7,505,000/$11,429,000 x 6.34%)} x (1 - 0.40) = (0.779% + 4.163%) x 0.6 = 4.942% x 0.6 = 2.9652%

6 0
3 years ago
Catherine had checked the price of an airline ticket in November to fly to Daytona Beach for her spring break. She was surprised
goldfiish [28.3K]
The correct answer is B. yield management
5 0
3 years ago
Read 2 more answers
Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 15-year zero coup
Vladimir79 [104]

Answer:

a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:

Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2

b) Interest deduction

After 1 year bond value from the above equation is 437.08

437.08 - 411.99 = 25.09

In the 14th year bond value from the above equation is 942.60

1000 - 942.60 = 57.40

c) Straight Line Method

Total Interest Paid = 1000 - 411.99

= 588.01

For yearly calculation

588.01 / 15 = 39.21

Further computation is done in the image below.

8 0
3 years ago
Read 2 more answers
Blossom Company received a check for $28320 on July 1 which represents a 6 month advance payment of rent on a building it rents
grandymaker [24]

Answer:

D. debit Unearned Rent Revenue, $4720; credit Rent Revenue, $4720.

Explanation:

When the Cash was received for 6 month`s Rent the entry was :

Debit : Cash  $28320

Credit : Unearned Rent Revenue $28320

At 31 July when 1 month`s rent expires the entry will be :

Debit : Unearned Rent Revenue (1/6 x $28,320) $4,720

Credit : Rent Revenue $4,720

thus

We reverse the liability - Unearned Rent Revenue and recognize Revenue for the month expired.

8 0
3 years ago
Provide the iupac name for this diethyldimethylhexane :
AnnyKZ [126]
Did you mean diethyl dimethyl hexane?
If so then the iupac name for it is 3-Ethyl-2,2-dimethylhexane <span>[</span>
4 0
3 years ago
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