Answer:
$20,000
Explanation:
If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been: the segment's margin of $20,000
The president considering the elimination of this division is not advisable. As long as none of the allocated common corporate fixed costs could be avoided, If the Rubber Division was dropped at the beginning of last year, the financial disadvantage to the company for the year would have been it's contributed margin that went towards off-setting corporate fixed costs.
Furthermore, if this segment is closed, it would affect the Cork division because it would be reporting a lower net operating income of $90,000 as a result of bearing all the corporate costs alone.
Answer:
Its always a competition
Explanation:
People use to complete on how the world gets and receives items same in business, companies compeate all the time trying to get the most money, visitors, and promotions.
Answer:
$360,000
Explanation:
Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.
An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.
The loss reported in May will be reported for that quarter in June.
Answer:
Contribution margin ratio = Contribution margin / Sales
Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%
Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%
The rule, <em>the Higher the contribution margin ratio, the lower the Break-Even point. </em>So, if sales mix shifts to product C90B, overall Break-even point <u>Decreases</u>.
It would help keep the person organized
