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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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Marlo Stanfield's operation also uses large quantities of prepaid cell phones, on average 1500 per week with a standard deviatio
Likurg_2 [28]

Answer:

option (A) 251 phones

Explanation:

Data provided in the question:

Average quantities of prepaid cell phones used = 1500 per week

Standard deviation, s = 145

Lead time for their own brand of prepaid cell phones, L = 3 weeks

lot size = 350 phones

Safety stock = 500 phone

Now,

The standard deviation of demand during lead time will be

= Standard deviation × \sqrt{\textup{Lead time}}

= 145 × √3

= 251.14 ≈ 251 phones

Hence,

The correct answer is option (A) 251 phones

3 0
3 years ago
Tim and Mike work for a broker who tells them to call their clients and inform them whenever their investments gain or lose 3% o
natulia [17]
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4 0
4 years ago
Compute the price of a 5.4 percent coupon bond with 10 years left to maturity and a market interest rate of 8.6 percent. (Assume
Doss [256]

Answer:

$788.22

Explanation:

We use the PV function that is reflected on the spreadsheet below. Kindly find the attachment

Provided that,  

Assuming the Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.30%

NPER = 10 years × 2 = 20 years

PMT = ($1,000 × 5.4%) ÷ 2  = $27

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price of the bond is $788.22

6 0
4 years ago
the preferred stock of BGE, inc. is sold at $37 and pays a divident of $5. And the net price of the secuirty after issurancee co
Anarel [89]

Answer:

15.18%

Explanation:

Cost of preferred stock = Annual dividend/Net Proceeds

Cost of preferred stock = $5 / $32.93

Cost of preferred stock = 0.1518372305

Cost of preferred stock = 15.18%

So, the cost of preferred stock for BGE is 15.18%.

5 0
3 years ago
Which of the following software maintenance steps erases gaps caused by deleting files from the hard drive? UPDATE SYSTEM SOFTWA
Lynna [10]

Defragging would be the correct answer

8 0
3 years ago
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