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aleksley [76]
3 years ago
15

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

$2,000. The division sales for the year were $1,040,000, and the variable costs were $850,000. The fixed costs of the division were $183,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
A. $54,900 decrease
B. $135,100 decrease
C. $52,900 decrease
D. $190,000 increase
E. $190,000 decrease

Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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4 years ago
3. Kevin took out a loan for a car. He must pay $3,000.00 in interest, service
ss7ja [257]

Answer:

The finance charge

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3 years ago
1. The National Highway Traffic Safety Administration estimates that some
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5 0
4 years ago
A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flow
OLEGan [10]

Answer:

If the interest rate is 12% and the cash flow in year 1 is 500 and 800 in year 3 we will discount these 2 payments buy 12% and if the present value of these 2 payments is more than 900 than the investment is worthy

500/1.12=446.42+

800/1.12^3= 569.42

==1015.85

The present values of the cash flow (1015.85) are more than the initial investment (900) therefore the publisher should invest.

If the interest rate is 25% and the cash flows are 500 in year 1 and 800 in year 2 we need to discount these by 25% and see if the present value of the cash flows are more or less than 900 which is the initial investment.

500/1.25=400+

800/1.25^=512

=912

912 is the present value of cash flows which is more than the initial investment of 900 therefore the investment would have taken place.

Explanation:

3 0
3 years ago
Use the following information to determine the break-even point in sales dollars: Unit sales 50,000 Units Dollar sales $ 500,000
Keith_Richards [23]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Unit sales 50,000

Units Dollar sales $ 500,000

Fixed costs $ 204,000

Variable costs $ 187,500

First, we need to calculate the unitary selling price and variable cost:

Unitary Selling price= 500,000/50,000= $10

Unitary variable cost= 187,500/50,000= $3.75

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 204,000/ [(10 - 3.75)/10]= $326,400

6 0
3 years ago
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