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denpristay [2]
3 years ago
7

Ramos Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the se

gment is eliminated, the building it uses will be sold. Advertising expense $ 70,000 Supervisory salaries 150,000 Allocation of companywide facility-level costs 65,000 Original cost of building 110,000 Book value of building 50,000 Market value of building 80,000 Maintenance costs on equipment 56,000 Real estate taxes on building 6,000
Required
Based on this information, determine the amount of avoidable cost associated with the segment.
Business
1 answer:
g100num [7]3 years ago
8 0

Answer:

$362,000

Explanation:

The market value of the building is an opportunity cost that is avoidable.

Ramos would avoid the real estate taxes if it sold the building.

Therefore,

Amount of avoidable cost associated with the segment:

= Annual advertising expense + Market value of the building (opportunity cost) + Annual maintenance costs on equipment + Annual real estate taxes on the building + Annual supervisory salaries

= $ 70,000 + $80,000 + $56,000 + $6,000 + $150,000

= $362,000

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Windsor, Inc. reports the following for the month of June.
Vladimir [108]

Answer: Please refer to the explanation section

Explanation:

1 June Inventory Balance = 556 x $6 = $3336

12 June Purchase = 1112 x $7 = $7784

23 Purchase = 834 x $11 = $9174

1.Cost of Ending inventory (First in First Out Method)

First in First out method implies that inventory purchased first will be sold first., with this in mind, We Can conclude ending inventory units  of 278 come from the inventory purchased on the 23rd of June.

Ending inventory units = 278 x $11 = $3058

Cost of good sold

Cost of goods sold = $3336 + $7784 + $6116*

Cost of goods sold = $17236

* (834 - 278 x $11)= 556 x $11 = $6116

Cost of Ending inventory Last In First Out

Last In First Out method implies that most recently purchased inventory will be sold first therefore We can conclude that the ending inventory units come from opening inventory units

Ending Inventory = 278 x $6 = $1668

Cost of goods sold =   $9174 + $7784  + $1668*

Cost of goods sold = $18626

*(556 - 278) x $6 = 278 x $6 = $1668

2 FIFO Method gives a higher a higher ending inventory Balance ($3058)  than LIFO Method ($1668). Ending inventory unit cost under FIFO Method is $11 while the ending inventory unit cost under LIFO Method is $6

3.  LIFO Method Provides Higher Cost of goods sold ($18626) than FIFO Method ($17236). LIFO Method includes the entire units of inventory purchased on the 23 June costing $11 per unit while Cost of goods sold under FIFO Method has only 556 units from the units purchase on the 23rd of June costing $11 per unit

6 0
3 years ago
Read 2 more answers
Lauren has chosen "Influence consideration" as the marketing objective in her Google Display Ads campaign. Which two targeting o
Maksim231197 [3]

ANSWER:

The correct answer are Custom Intent audiences and Similar Audiences.

STEP-BY-STEP EXPLANATION:

Custom Intent audiences: In a nutshell, custom intent audiences are a more granular form of targeting that allows you to target people who are in the market for the specific products and services you are offering. Custom intent audiences are available on the display network only.

Similar audiences is a targeting feature based on first party data lists, most commonly remarketing lists, that helps you expand the reach of your best-performing audiences by targeting new users with similar characteristics to your site visitors.

6 0
3 years ago
If a management team wishes to undertake efforts specifically aimed at helping the company meet or beat the investor-expected in
dusya [7]

Boom general operating profits in all four geographic areas -- the resulting growth in working earnings will improve general net income and assist increase the EPS, using the business enterprise's stock fee upward.

Due to the fact, that the boom in EPS can bring about an elevated and strong dividend, and thus can have an impact on the investors to buy the stocks, resulting in a boom in stock prices.

The inventory price is a relative and proportional price of an organization's worth. consequently, it only represents a percent alternate in an organization's market cap at any given factor in time. Any percentage adjustments in an inventory fee will bring about the same percent trade in a company's marketplace cap.

A percentage fee is the rate of an unmarried proportion of a number of saleable equity shares of an organization. In layman's terms, the stock price is the best amount someone is willing to pay for the inventory, or the bottom amount that it can be bought for.

Learn more about company's stock price here: brainly.com/question/25818989

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5 0
1 year ago
The four-firm concentration ratio in this industry is ________. Group of answer choices 21% 79% 94% 58% 41%
Ugo [173]

Answer:

I'm sorry I looked it up but one site said 41 and another said 79

6 0
2 years ago
Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to ear
scoundrel [369]

A new income statement for August for Swift company is shown below.

Also, since the president has asked you to check over the income statement and make a recommendation as to whether the company should look for a buyer for its assets.

My recommendation would be to not buy.

                                            Swift Company

                                         Income Statement

                               For the Month Ended August 31

Particulars                                                   Amount (in $)    Amount (in $)

Sales ..............................................................                          450,000

Cost of goods sold:

Finished goods inventory, August 1 ...............  40,000

Add: Cost of goods manufactured ................. <u>310,000 </u>

Goods available for sale ................................ 350,000

Deduct: Finished goods inventory, August 31..<u> 60,000</u>            <u> 290,000 </u>

Gross margin ..................................................                         160,000

Selling and administrative expenses .................                      <u>142,000</u>

Net operating income......................................                           18,000

Sam failed to distinguish between product costs and period costs when preparing the August income statement, and he also failed to recognize changes in inventories between the beginning and end of the month.

Once these errors are corrected, the company's financial situation looks much better, and selling the company may not be a good idea.

Hence, my recommendation would be not to buy.

Learn more about income statement:

brainly.com/question/24498019

#SPJ4

7 0
1 year ago
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