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tatyana61 [14]
3 years ago
12

Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and

is considering dropping that product line. The following information is available regarding its canoe segment. (Leave no cells blank. Enter zeros where appropriate.)MARINETTE COMPANYIncome Statement—Canoe SegmentSales $ 3,300,000 Variable costs Direct materials $ 710,000 Direct labor 760,000 Variable overhead 560,000 Variable selling and administrative 330,000 Total variable costs 2,360,000 Contribution margin 940,000Fixed costs Direct 635,000 Indirect 560,000 Total fixed costs 1,195,000 Net income $ (255,000)Required:1. If canoes are discontinued, calculate the net income lost or gained.
Business
1 answer:
Vesna [10]3 years ago
4 0

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.

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The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate
myrzilka [38]

Answer:

The average rate of return of this investment is <u>8%</u>.

Note: Based on the information provided in the question, the average rate of return of this investment is <u>8%</u> but it is not included in the option. Kindly confirm this from your teacher.

Explanation:

Note: The data in the question are merged and they therefore first sorted before answering the question as follows:

Year         Income from Operations             Net Cash Flow

  1                          $100,000                               $180,000

  2                             40,000                                 120,000

  3                             40,000                                 100,000

  4                              10,000                                  90,000

  5                              10,000                                 120,000

The explanations to the answer is now given as follows:

Calculation of the average rate of return for this investment

Average rate of return (ARR) is a financial ratio that is used to determine the rate of return that is expected from an asset over its lifetime. ARR is calculated as the total income from the assets divided by the initial investment on the assets.

The average rate of return for this investment can be calculated as follows:

Total income form operations over five years = $100,000 + $40,000 + $40,000 $ $10,000 + $10,000 = $200,000

Average income = Total income form operations over five years / Number of years = $200,000 / 5 = $40,000

Average rate of return for this investment = Average income / Cost of Machine = $40,000 / $490,000 = 0.08, or 8%

Therefore, the average rate of return is <u>8%</u>.

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The five competitive forces are as follows;

COMPETITIVE RIVALRY which determines the strength and number of your competitors.

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Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-
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Answer:

$19,790

Explanation:

A taxpayer’s tax base for computing a self-employed taxpayer’s self-employment tax (i.e., net earnings from self-employment) is the taxpayer’s net business profit from Schedule C multiplied by 92.35%.

So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.

Alice will owe $15,773 ($127,200 maximum amount x 12.4%) in Social Security taxes and $4,017 ($138,525 x 2.9%) for the Medicare component of FICA taxes.

Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).

She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.

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3 years ago
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Managerial accounting information: Select one: a. follows GAAP in the reporting process. b. can be tailored to the needs of the
saveliy_v [14]

Answer:

b. can be tailored to the needs of the internal user.

Explanation:

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It need not follow the US GAAP process, as there is no statutory requirement.

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Therefore, correct option is

b. can be tailored to the needs of the internal user.

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3 years ago
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