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MArishka [77]
3 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]3 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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kotykmax [81]

Answer:

The correct answer would be E, Taking Action.

Explanation:

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3 years ago
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This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides
Ann [662]

Answer:

Matching the correct global market entry strategy with:

1. Moodmatcher lipstick  = b. Direct Exporting

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Explanation:

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a. Indirect Exporting

b. Direct Exporting

c. Licensing

d. Franchising

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6 0
2 years ago
On July 1, 2020, Crocus obtained a $90 million construction loan with a 6% interest rate. The loan was outstanding through the e
enyata [817]

Answer:

$4.5

Explanation:

Interest to be capitalized=$90*6%*10/12=$4.5

As the loan was outstanding from January  to October 2021, therefore interest is worked out for 10 months.

Please note that interest of only those debt instruments are capitalized which have been obtained to finance any construction project under the specific interest method.

In our example $90 is the construction loan therefore only this loan's interest is capitalized.

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3 years ago
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Answer:

A. That money earns interest when the bank loans it out.

Explanation:

Banks pay their customers interest on the money in their accounts because that money earns interest when the bank loans it out.

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3 years ago
If an issuer sells bonds at a premium: Multiple Choice The carrying value increases from the par value to the issue price over t
AnnyKZ [126]

Answer:

The carrying value decreases from the issue price to the par value over the bond’s term.

Explanation:

The carrying value of a bond is the par value or face value of that bond plus any unamortized premiums or less any unamortized discounts. The net amount between the par value and the premium or discount is called the carrying value because it is reported on the balance sheet. When a bond is issued at a premium, the carrying value is higher than the face value of the bond.

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