Answer:
The elimination of the North division would result in an increase to net operating income of $100,000 for the South division.
Explanation:
Please see computation of the company's overall net profit
= South sales - South variable costs - South traceable fixed costs - South allocated common corporate cost - North allocated common corporate cost
= $880,000 - $550,000 - $80,000 - $50,000 - $100,000
= $100,000 profit.
N.B
Since the North division has been eliminated, all the items for North division would all be ignored except its allocated common corporate cost.
Answer:
It helps consumers tell producers when prices are too high.
Explanation:
The law of demand affirms that an increase in price results in reduced demand. It means that when prices increase, consumers will buy fewer quantities of a product or service. The law of demand shows the relationship between price and the quantity of a product consumers are willing to buy in the market.
Consumers can communicate with producers through the volume of products purchased. When the quantity purchased is low, producers will know the set prices are high.
Answer: Service Charge
Explanation: a service charge goes toward the day to day running costs of a company, used to cover things like building costs, insurance, employee compensation. It is how companies like Costco are able to pass along reduced price products to members.
