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larisa [96]
3 years ago
9

The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and ha

s considered discontinuing it on several occasions. Data from the company's accounting systemfor this product for last year appear below:
Sales $ 150,000
Variable expenses $ 72,000
Fixed manufacturing expenses $ 50,000
Fixed selling and administrative expenses $ 33,000
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.
What would be the financial advantage (disadvantage) from dropping product V86O?
a. ($35,000)
b. ($5,000)
c. $35,000
d. $5,000
Business
1 answer:
kumpel [21]3 years ago
6 0

Answer:

a. ($35,000)

Explanation:

The computation of the financial advantage or disadvantage of dropping product V860 is shown below:

= Sales - Variable cost - Avoidable fixed manufacturing - Avoidable fixed selling

= $150,000 - $72,000 - $30,000 - $13,000

= $35,000

This $35,000 would be a financial disadvantage and the fixed cost should not be considered as it is not held for decision making purpose

Hence, the correct option is a

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On December 31 of the current year, Jones Company purchased a building for $100,000, paying $40,000 in cash and signing a 15-yea
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Answer:

These are the correct journal entries:

Account                                               Debit         Credit

Building                                          $100,000

Cash                                                                     $40,000

Mortgage Payable                                             $60,000

Interest Expense                           $3,000

Accrued Interest Payable                                   $3,000

4 0
3 years ago
On January 1, 2012, Fei Corp. issued a 3-year, 5% coupon, $100,000 face value bond. The bond was priced at an effective interest
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Answer:

c. $7,418

Explanation:

Calculation to determine What was Fei’s Interest Expense on the bond during fiscal year 2012

Using this formula

Interest Expense =Interest payable+Amortization of bonds discount interest expense

Let plug in the morning

Interest Expense=(5%*100,000)+$2,418

Interest Expense=$5,000+$2,418

Interest Expense=$7,418

Therefore Fei’s Interest Expense on the bond during fiscal year 2012 is $7,418

3 0
3 years ago
Which of the following refers to how hard it is to get accepted or get into a 4 year college?
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A=<span>is an expression of the ease with which alternating current flows through a complex circuit or system.
B=</span><span>Student–teacher ratio or student–faculty ratio is the number of students who attend a school or university divided by the number of teachers in the institution
so the answer will be B
hope this helps.
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7 0
3 years ago
Brazil has a population of about 210​ million, with about 150 million over the age of 15. Of​ these, an estimated 25​ percent, o
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Answer:

B. Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.

Explanation:

According to the New Growth Theory, it is both human desire and capital the factors that drive economic growth the most.

A literate population that does not read a lot means a lower level of human capital for Brazil, which in turn means that Brazil has a lower potential for economic growth. In order to increase economic growth, the Brazilian government should promote readership among its population.

3 0
2 years ago
The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original
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Answer:

b. The same as it would have been if the original payment had been debited initially to an expense account

Explanation:

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original journal entry to record a 3 year insurance policy on January 1 is:

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Adjusting entry on December 31

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balance of prepaid insurance = $2,400

5 0
3 years ago
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