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Pepsi [2]
3 years ago
14

A division has the following data: Sales $320,000, Variable costs $200,000, and Fixed costs $140,000. If the division were elimi

nated, the fixed costs would be allocated to other divisions. What the net impact on the company’s overall profit if the division is eliminated?
Business
1 answer:
pashok25 [27]3 years ago
4 0

Answer:

Effect on income= $120,000 loss

Explanation:

Giving the following information:

Sales $320,000

Variable costs $200,000

Fixed costs $140,000.

None of the fixed costs are avoidable. Therefore, they shouldn't be taken into account to make the decision.

Effect on income= Sales - varaible cost

Effect on income= 320,000 - 200,000= $120,000 loss

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3 years ago
As a CEO, you are concerned that your firm and the industry in your country are being devastated by foreign imports. Trade lawye
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The company can file antidumping case against the leading foreign rivals. The probability of winning the case is only high when there is cash deposits near to zero in the country and balance of payment is negative.

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Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
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Answer:

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Explanation:

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Number of year = 7

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