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maks197457 [2]
3 years ago
9

Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,000 from sales $201,0

00, variable costs $176,000, and fixed costs $30,000. If the Big Bart line is eliminated, $20,300 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Sales $enter sales in dollars $enter sales in dollars $enter sales in dollars Variable costs enter variable costs in dollars enter variable costs in dollars enter variable costs in dollars Contribution margin enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts enter a subtotal of the two previous amounts Fixed costs enter fixed costs in dollars enter fixed costs in dollars enter fixed costs in dollars Net Income / (Loss) $enter net income or loss in dollars $enter net income or loss in dollars $enter net income or loss in dollars The Big Bart product line should be select an option.
Business
1 answer:
mel-nik [20]3 years ago
4 0

Solution:

Differential Analysis:      

                                      Continue      Eliminate      Net income

                                                                                   Inc/Dec  

                                                                                             

Sales                               201000             0                -201000  

variable cost                     176000             0                 176000  

Contribution margin          25000              0                -25000  

Fixed cost                        30000           20300               9700  

Net income / (loss)           -5000             -20300          -15300  

No, The Product line shall not be eliminated  

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Buzz Lightyear has been offered an investment in which he expects to receive payments of $4,000 at the end of each of the next 1
LenaWriter [7]

Answer:

IRR= 21.86%

Explanation:

Giving the following information:

Initial investment (PV)= $10,000

Cash flows (PMT)= $4,000 per year

Number or years (n)= 4

<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>

Function: CMPD

n= 4

I%= SOLVE = 21.86%

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6 0
3 years ago
Samson, Inc. had the following balances and transactions during​ 2019: Beginning Merchandise Inventory 10 units at $ 94 March 10
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Answer:

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3 0
3 years ago
Ginny and Eric are partners at an architecture firm. They are trying to determine which of them has a comparative advantage in b
blondinia [14]

Answer: (i) $20 per model

(ii) $27 per model

(iii) Ginny has a comparative advantage in building models.

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

Ginny's Opportunity cost of producing one model = \frac{400}{20}

                                                                                      = $20 per model

Eric’s opportunity cost of building models = $20 + 35% of $20

                                                                      = $20 + $7

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Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.

5 0
3 years ago
Dave works as a traveling pharmacist. He does not work at one pharmacy but fills in all over the country whenever another pharma
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Answer: This is an example of a RPh on the Go.

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3 0
3 years ago
A fall in the value of the dollar againstother currencies makes U.S. final goods and services cheaper toforeigners even though t
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Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.

Explanation:

The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.

If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.

It's only a change in price that result results in a movement along the aggregate demand curve.

Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.

Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.

The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.

5 0
3 years ago
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