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
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.

You might be interested in
[55 points] (public health) in 1972 a one-in-six random survey of the electoral roll | largely concerned with studying heart dis
Flauer [41]
It needs to be an equivalent number to an equator and then times it and multiply the answer
5 0
3 years ago
What is the connection with the company Unocal and the Country of Burma?
balu736 [363]

Answer:

Unocal was attracted to Burma for several reasons. First, labor was cheap and relatively educated. Second, Burma was rich in natural gas resources. Third, Burma was an entry point into other international markets, particularly in and around Southeast Asia. Finally the political environment was extremely stable.

Explanation:

5 0
3 years ago
Analyze the various methods available for avoiding overdrafts. Based on how you might use you account most often, decide which w
soldi70 [24.7K]

Overdrafts are given by banks only to trustworthy clients. if the bank balance is maintained clearly. To avoid overdrafts there should always be a sufficient amount of balance and avoid using cheques on situations as such.avoid ATM cards as well

4 0
3 years ago
Which of the following is a mutually exclusive cost pool used in activity-based cost accounting? a. All of the answers are corre
VikaD [51]

Answer:

The correct answer is A: All of the answer are correct

Explanation:

ABC defines production as consisting of a variety of activities, and it assigns costs to those activities. An activity cost pool is an aggregate of all the costs associated with performing a particular business task, such as making a particular product. By pooling all costs incurred in a particular task, it is simpler to get an accurate estimate of the cost of that task.

Cost pool is created for those costs more closely aligned with the production of goods or services. It is very common to have separate cost pools for each product line. If production batches are of greatly varying lengths, then it has to consider creating cost pools at the batch level, so that it can adequately assign costs based on batch size.

To conclude, the creation of a cost pool and the subsequent assignment of costs will vary according to the length of production and the possibility to discriminate and assign costs.

4 0
3 years ago
The questions of economics address which of the following? Chec
katen-ka-za [31]

Answer:

What

How

Who

Explanation:

Because ALL economic resources are scarce, every society must answer three questions:

1. What goods and services should be produced?

2. How should these goods and services be produced?

3. Who consumes these goods and services?

5 0
3 years ago
Other questions:
  • Suppose the country of Lilliput exported 263 billion dollars worth of goods while they imported 477 billion dollars worth of goo
    11·1 answer
  • Credit unions are not subject to federal regulations.<br> T/F
    10·2 answers
  • If your income increases by $1,500 and you only consume $900 of it, your marginal propensity to consume would be equal to: a. 0.
    6·1 answer
  • The asset's book value is $70,000 on July 1, Year 3. On that date, management determines that the asset's salvage value should b
    12·1 answer
  • The Balance Sheet reports assets, liabilities, and stockholders' equity at a specific date. A : True B : False
    10·1 answer
  • If yal bold drop ya body count
    14·2 answers
  • What makes a checking account more conveniant than a savings account?
    11·2 answers
  • Give me a couple countries that have a low and high quality of life index​
    9·1 answer
  • g The Melville Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale
    8·1 answer
  • In most companies, portfolio management is typically done at the sbu or ___________ level of the firm.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!