Answer:
$24,000
Explanation:
Product A Product B Product C
sales 70,000 97000
Variable cost 37000 51000
Contribution margin 33000 46000
Avoidable cost 10,000 20000
Unavoidable cost 7000 12000 9400
Operating income 16000 14000
Total operating income if product C is dropped is (16000+14000 +3400-9400)
=$24000
Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well
Answer:
33.33%
Explanation:
The debt to assets ratio indicates the proposition of a company's assets that have been financed through debt.
the formula for determining this ratio is as follows
Debt to asset ratio = Total debts/total assets x 100
For Cy Ifran, total debts or liabilities =$200,000
total assets = $600,000
Debt to asset ratio =$200,000/ $600,000
=0.33 x 100
=33.33%
Answer:
Lean production is a production methodology focused on eliminating waste, where waste is defined as anything that does not add value for the customer. Although Lean's heritage is manufacturing, it is applicable to all types of organisation and all an organisation's processes.
Explanation:
Answer:
False
Explanation:
The capacity utilization rate is found by dividing used capacity by the total capacity operating level.
Since services cannot be stocked, the ideal scenario would be to operate at full capacity every single day, but that is not possible. I'm not sure if there is any service company in the world that operates at full capacity all the time, not even Magic Kingdom or Disneyland.
But that doesn't mean that it is always bad to operate at low capacity levels, since every service company must regularly perform maintenance operations, e.g. a hotel must be painted and other repairs must be made.
Also, many services are seasonal, e.g. you do not sky all year long, only during winter, and the opposite applies to the beaches and other parks.
Answer:
$918.89
Explanation:
For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment
Given that,
Future value = $1,000
Rate of interest = 8% ÷ 2 = 4%
NPER = 5 years × 2 = 10 years
PMT = $1,000 × 6% ÷ 2 = $30
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the current price of the bond is $918.89
