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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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A new car has a sticker price of $20,950, while the invoice price paid was $18,750. What is the dealer markup?
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20,950 minus 18750 is 2200 so im guessing the markup is $2200
7 0
2 years ago
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McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but
ratelena [41]

Answer:

YTM = 6.88%.

YTC = 4.26%.

Explanation:

a. Calculation of Yield to Maturity (YTM)

The bond's Yield to Maturity can be calculated using the following RATE function in Excel:

YTM = RATE(nper,pmt,-pv,fv) .............(1)

Where;

YTM = yield to maturity = ?

nper = number of periods = number of years to maturity = 25

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = face value or par value of the bond = 1000

Substituting the values into equation (1), we have:

YTM = RATE(25,90,-1250,1000) ............ (2)

Inputting =RATE(25,90,-1250,1000) into excel (Note: as done in the attached excel file), the YTM is obtained as 6.88%.

Therefore, YTM is 6.88%.

b. Calculation of Yield to Call (YTC)

The bond's Yield to call can be calculated using the following RATE function in Excel:

YTC = RATE(nper,pmt,-pv,fv) .....................(3)

Where;

YTM = yield to call = ?

nper = number of periods = number of years to call = 5

pmt = annual coupon payment = $90 = 90

pv = present value = current bond price = $1,250 = 1250

fv = future value of the bond or the amount at which the bond can be called = $1,050 = 1050

Substituting the values into equation (3), we have:

YTM = RATE(5,90,-1250,1050) ............ (4)

Inputting =RATE(5,90,-1250,1050) into excel (Note: as done in the attached excel file), the YTC is obtained as 4.26%.

Therefore, YTC is 4.26%.

Download xlsx
6 0
2 years ago
Regarding competitive strategies, advertising is used in which strategy.
Cerrena [4.2K]

Answer:

to attract customers

Explanation:

they are put on places where people are many and they can acces the advertisement easily

4 0
3 years ago
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What unique things would separate you from other applicants applying for this money?
Sergio039 [100]
<span>The unique things that would separate me from other applicants applying for this job are the ff: (1) i do not care of the compensation but more on the learning i can gather at the end of the day; (2) it has always been my passion to the job; and (3) i want to share my skills and talents to the company as well.</span>
4 0
3 years ago
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Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $70,600. The company's beginning merchand
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Answer:

$84,100

Explanation:

Haack incorporation cost of goods last year was $70,600

The beginning merchandise inventory was $16,500

The ending merchandise inventory was $30,000

Therefore the total amount of purchases can be calculated as follows

Cost of goods= beginning inventory + purchases-ending inventory.

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70,600-16,500= purchases - 30,000

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54,100+30,000= purchases

Purchases= 84,100

Hence the total purchases is $84,100

3 0
3 years ago
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