Answer:
decrease by $56,600 per month
Explanation:
The impact on the net operating income would be shown below:
In the first case,
Sales ( $31 × 16,100 units) = $499,100
Variable expenses ($25 × 16,100 units) = - $402,500
Fixed expenses = - $111,000
Net loss = - $14,400
And, the fixed cost not avoidable cost is $71,000
So, the net income decreased by
= $71,000 - $14,400
= $56,600
if the product A is discontinued
The rest of your question:
unavoidable fixed overhead cost. What are the relevant costs for this decision? Based only these costs, which option should the company <span>choose?
The answer:
Relevant cost to make and Buy.</span>
Answer:
you get brainlyist by answering questions. not making them
Answer:
23%
Explanation:
The computation of the average rate is shown below:
But before that following calculations to be done
Annual Depreciation is
= ($132,000 - $16,000) ÷ 10
= $11,600
The Annual Net Income would increase by
= $34,000 - $5,380 - $11,600
= $17,020
Now Average Investment is
= ($132,000 + $16,000) ÷ 2
= $74000
The Average rate of return is
= Increase in Annual Net Income ÷ Average Investment
= $17,020 ÷ $74,000
= 23%