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4 years ago

. Acquiring long-term assets necessary to operate the business is called a(n):

Business

1 answer:

aniked [119]4 years ago

4 0

<span>Acquiring long-term assets necessary to operate the business is called investing activity. </span>

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Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicate

Varvara68 [4.7K]

Answer:

Healthy Beverage Inc.

a) Differential Analysis

1) Continue Fruit Cola (Alt. 1)

Sales $12,750,000

Cost of goods sold 8,500,000

Gross profit $4,250,000

Operating expenses 6,000,000

Loss from operations ($1,750,000)

2) Discontinue Fruit Cola (Alt. 2)

Differential Effect on Income (Alternative 2):

Fixed costs:

Cost of goods sold $2,125,000

Operating expenses 900,000

Income (Loss) ($3,025,000)

b. Should Fruit Cola be retained ?

The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.

Explanation:

Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.

In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.

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3 years ago

Helpppp ASAPPP

crimeas [40]

List three services provided by a travel agent that benefit a business person who travels overseas frequently?
Familiarity with preferences for departure and return, seating is desirable and reliable

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3 years ago

What is the name of the specific protection that the insurer provides to the policy holder

kupik [55]

Answer:

option D is correct answer

Explanation:

hope it's helpful for you

5 0

3 years ago

Read 2 more answers

A local club is selling Christmas trees and deciding how many to stock for the month of December. If demand is normally distribu

Nastasia [14]

Answer:

0.6

Explanation:

Data provided :

Mean = 100

Standard deviation = 20

Salvage value of the tree = $ 0

Actual cost of the tree = $ 20

Selling cost of the trees = $ 50

Now, the cost of shortage = Selling cost - actual cost = $ 50 - $ 20 = $ 30

and the outrage cost = actual cost = $ 20

Now,

the service level is calculated as:

service level = $\frac{\textup{cost of shortage}}{\textup{cost of outrage + cost of shortage}}$

on substituting the value, we get

service level = $\frac{\$\ 30}{\$\ 20\ +\ \$\ 30}$

Service level = 0.6

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3 years ago

What is the difference between product advertising and institutional advertising?

Likurg_2 [28]

Answer: Product advertising focuses on promoting specific individual products, while institutional advertising focuses on promoting your overall brand.

Explanation:

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3 years ago