1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nikolay [14]
3 years ago
10

A study has been conducted to determine if product a should be dropped. sales of the product total $500,000 per year; variable e

xpenses total $340,000 per year. fixed expenses charged to the product total $220,000 per year. the company estimates that $180,000 of these fixed expenses will continue even if the product is dropped. these data indicate that if product a is dropped, the company's overall net operating income would:
Business
1 answer:
Dmitrij [34]3 years ago
4 0
Keep the product:
Sales $500,000Variable Expenses 340,000
---------------------------------------
Contribution Margin 160,000
Fixed Manufacturing 220,000
Net operating income (60,000)

Drop the product:
Sales $0
Variable Expenses 0
----------------------------
Contribution Margin 0
Fixed Manufacturing 180,000
Net operating income (180,000)

Difference of keep and drop the product would be:Sales ($500,000)
Variable Expenses 340,000
-----------------------------------------
Contribution Margin (160,000)
Fixed Manufacturing 40,000
Net operating income (20,000)

Therefore, net operating income would decrease by $20,000 if Product A were dropped.
You might be interested in
Which the following consists of all the benefits a product will provide for consumers or business​ customers? A. Augmented produ
Lorico [155]

Answer:

The correct answer is: E. Attributes.

Explanation:

Characteristics of a product are considered, the particularities that must necessarily be part of its nature. If a change in a particularity does not determine that it is a different product, or that it can be traded independently, that particularity will be a characteristic.

We talk about attributes when the particularities that make up a product determine the existence of a different product if there is a change in them. Therefore, it will be possible to market the original product and the product with the changed attribute separately. For example, if color is an attribute, and the original product is blue. A red product can be marketed independently of blue.

The attributes of a product may be susceptible to many different classifications, to highlight the distinction between tangible attributes and intangible attributes of a product. In turn, physical and functional ones can be distinguished within tangibles. In this way we have a classification in physical, functional and psychological attributes. The latter being the characteristic intangible attributes of a product.

It is also common to talk about the distinction between intrinsic attributes, which usually coincide with physical attributes, and external attributes, which serve to identify the product.

Thus, physical attributes are understood as those related to the material aspects of a product while functional attributes are those related to the utilities or benefits of a product.

It is important to keep in mind that, as in the case of the distinction between attributes and characteristics, the distinction between physical attributes and functional attributes does not have absolute character. That is, the physical attributes of one product can be functional attributes in another.

6 0
2 years ago
Use the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year as
Elis [28]

Answer:

Current year = 204%

Prior year = 100%

Explanation:

Detailed solution is given below

4 0
3 years ago
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
hjlf

Answer:

$20,000

Explanation:

The problem simply asks for Eng's initial capital balance in Cor-Eng partnership and it is just Eng's <u>contributed cash of $2,000</u> to form the partnership.

No need to dwell on the other amounts. Just focus on what was being asked and you'll not get lost ^_^

8 0
3 years ago
is the sum of all the values that customers exchange for the benefits of having or using a product or service.
snow_tiger [21]

Price. It is the sum of all values that buyers exchange for the benefits of having or using a good or service. can be defined very narrowly as the amount of money charged for a product or a service. However, the price is really more than that.

3 0
3 years ago
Read 2 more answers
Accounting about Stockholders' Equity? 1. Common stockholders usually have all of the following rights except: a) To receive div
lisov135 [29]
1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.

2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company

3. B. Preferred Stock

Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.

If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders

Hope this helped you out

8 0
3 years ago
Other questions:
  • A small manufacturing firm uses roughly 3400 pounds of chemical dye a year. Currently the firm purchases 300 pounds per order an
    6·1 answer
  • HELP, ACCOUNTING
    8·1 answer
  • To be effective, market researchers must ___________ collect, record, analyze, and interpret data. Group of answer choices syste
    14·1 answer
  • Bondholders are creditors of the issuing corporation. true
    6·1 answer
  • What is the process of determining the present value called?
    7·1 answer
  • Gears Inc., an automobile manufacturing firm, has hired an external agency to handle its employee compensation function so that
    8·2 answers
  • fter a company chooses the modules they want to implement, they must decide on ____ options, which allow the customer to customi
    14·1 answer
  • If i get 16 brainlest ill give u guys 136 points
    15·2 answers
  • Law of demand is defined as the relationship between price and quantity from a buyer's perspective.
    5·1 answer
  • hans purchased a new passenger automobile on august 17, 2022, for $30,000. during the year, the car was used 40% for business an
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!