Answer
The answer and procedures of the exercise are attached in the following archives.
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.
Answer: 1) Drawer = B. Writer of the check. A drawer is who signs the check.
2) Drawee = F. payee. The check is in favor of this person.
3) Endorsement = D. transfer the check.
4) Post-dated check = E. future date. It is a check that can be cashed from a future date.
5) Prove cash = C. reconcile the bank statement.
7) Imaged check = A. substitute check.
Answer:
decrease by 305,000 dollars
Explanation:
Sales 3,300,000
Variavle cost:
materials 710,000
labor 760,000
overhead 560,000
S&A <u> 330,000 </u>
total (2,360,000)
contribution 940,000
<u>fixed cost:</u>
tracable <u> (635,000)</u>
operating income 305,000
allocated <u> (560,000)</u>
net (255,000
The canoes division absorbs 305,000 of the common fixed cost
If discountinued the company as a whole will see their net income decreases by this amount. In the short run, the company should only discontinued a project or division when it is not able to afford their own cost. That is not the case, canoes division afford their own cost is the allocated from other activities of the company that generates this loss.
