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MArishka [77]
4 years ago
8

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

$3,000. The division sales for the year were $1,050,000 and the variable costs were $860,000. The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Business
1 answer:
ludmilkaskok [199]4 years ago
8 0

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the  Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost  

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

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The balance in Accounts Receivable at the beginning of the year amounted to $3,360. During the year, $10,640 of credit sales wer
zimovet [89]

Answer: $11,800

Explanation:

Cashflow inflow from Customers is calculated as follows

Cash flow from customers = beginning account receivable + Credit sales - ending Account receivable.

Plugging in figures would give us,

= 3,360 + 10,640 - 2,200

= $11,800

$11,800 is the amount of cash inflow from customers that would appear in the operating activities section of the cash flow statement.

You may wonder what happened to the uncollectible accounts expense amounted of $940. It was meant to confuse you. That figure is dealt with before the ending Account Receivable balance is computed.

5 0
4 years ago
In a ____________, all functional activities are controlled by a product group at headquarters; local managers do not usually pr
german

Answer:

Global product division structure.

Explanation:

A Global product division structure is a business structure where the central headquarters controls the activities of it's branches which are located in different countries, especially when it involves key decision making process in the business.

The various member branches of the global product division structure has a manager who supervises the daily runnings of the business and gives a report back to it's central headquarters.

4 0
3 years ago
Brees Inc., a company that produces and sells a single product, has provided its contribution format income statement for April.
ch4aika [34]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Sales (6,200 units) $136,400

Variable expenses 80,600

<u>The total contribution margin is the difference between the sales revenue and the total variable costs. First, we need to determine the unitary selling price and unitary variable costs:</u>

Selling price= 136,400/6,200= $22

Unitary variable cost= 80,600/6,200= $13

Now, we can calculate the total contribution margin at 5,800 units:

Total contribution margin= 5,800*22 - 5,800*13= $52,200

6 0
4 years ago
According to california real estate law, how often must a broker balance his or her trust accounts?
just olya [345]

According to california real estate law, how often must a broker balance his or her trust accounts is Trust accounts must always be a balance equal to the security deposits total.

<h3>What is  California real estate law?</h3>

California real estate law can be defined as the regulation or rules and law that real estate owner are expected to abide by or follow.

The aim and purpose of California real estate law is to protect the general public from real estate owner are not trustworthy and lack integrity.

Hence,  According to California real estate law, how often must a broker balance his or her trust accounts is: The Trust accounts must always be a balance equal to the security deposits total.

Learn more about California real estate law here:brainly.com/question/15310355

brainly.com/question/16945831

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8 0
2 years ago
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a join
Marizza181 [45]

Answer: The correct answer is "B. lower".

Explanation: The insurance premium is one of the central elements of the contract since it is the price that the insured pays for the coverage he receives. Its value will depend on the type of risk insured and is always fixed in advance by the insurance company. It must be sufficient for the insurer to face the insured risk, calculating that not all the insured will need the coverage, that is, statistically, there is a probability that it will happen or not.

The premium is lower in a survivorship life policy as compared to the premium in a joint life policy.

3 0
3 years ago
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