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
Murljashka [212]
3 years ago
15

Wilson Co. has three segments -- Tennis, Golf, and Fishing. The Tennis segment is currently producing 2,000 units annually. The

units sell for $200 each. The cost of each unit is $110. The Tennis segment spends $100,000 on product design each year. The segment also is allocated $200,000 of annual facility-level costs. Calculate the avoidable cost if Wilson Co. were to eliminate the Tennis segment.
What can be considered relevant costs?
Business
1 answer:
suter [353]3 years ago
5 0

Answer:

The tennis department relevant costs are variable manufacturing costs ($220,000) and product design ($100,000).

Explanation:

First of all Wilson should eliminate its tennis department (since it is not profitable) only if it can use their production facilities to make something else that does generate profit or just sell that facility.

tennis department net profit = $400,000 - $520,000 = -$120,000 or $120,000 net loss

The department's major cost comes from the allocation of $200,000 in facility level costs, but these costs are not relevant. Relevant costs are costs that can be avoided by making a business decision like closing a business department.

You might be interested in
Discuss the unique marketing characteristics a product or service required based on the specific phase of the product life cycle
laiz [17]

Answer: The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Explanation:

The product life cycle of a unique marketing can be characterized by introduction, growth, maturity and decline.

Introduction; This is viewed as an entry level into the market. Where the goods begin to gain a little recognition

Growth; this is described as a movement from introduction to a fast or slow consistent rapid growth of the product in the market.

Maturity; is described as the growth from the growth category, where the product gain some market stability and is now known by the public.

Decline; is the stage of slow and loss of recognition in the market space which could be caused by lack of creativity or consistency drop

While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales

5 0
3 years ago
Choosing stocks by searching for predictable patterns in stock prices is called ________.A. fundamental analysisB. technical ana
77julia77 [94]

Answer:

B. technical analysis

Explanation:

Technical analysis -

It is the method of predicting and examining the movement of price , in the financial market .  

The method requires the use of past data , i.e. , the market statistics , previous price chart and tables .

hence , the correct answer for the given information , is B. technical analysis .

6 0
3 years ago
Bird Brain Co. reported net income of $45,000 for the year ended December 31, 2018. January 1 balances in accounts receivable an
mart [117]

Answer:

$48,000

Explanation:

Computation for Brain's cash flows from operating activities

CASH FLOW FROM OPERATING ACTIVITIES

Net income$45,000

Add: Decrease in Account receivable $1,000

($23,000-$22,000)

Add: Increase in Account Payable $2,000

($26,000-$28,000)

Cash flows from operating activities $48,000

Therefore Brain's cash flows from operating activities would be: $48,000

5 0
3 years ago
Question 433 pts Implementation of the law Group of answer choices is typically done by the members of Congress. is typically au
Eddi Din [679]

Answer:

Implementation of the law Group of answer choices requires judgment because laws are often very vague.

Explanation:

Originally, The Executive arm of government is supposed to implement the law while the congress which is also called the legislative arm enacts them.

However, It is necessary for the judiciary to interpret the laws since the executive arm tends to abuse their privileges thereby failing to implement the law.

The law is vague and is often subject to interpretation. The judges constitute a neutral body that balances power in government by passing judgement on erring officials and the entire citizenry thereby making implementation of the law possible.

7 0
3 years ago
As a result of a thorough physical inventory, Coronado Company determined that it had inventory worth $321000 at December 31, 20
Helga [31]

Answer:

The correct cost of inventory that Coronado should report is $367300

Explanation:

The goods sent on consignment still belong to the consignor until they are sold off by the consignee. So, the consignor should add the unsold consignment goods in its inventory. Thus we will add the cost of goods sent on consignment to the value of inventory.

Value of inventory = 321000 + 46300 = $367300

The goods purchased by Coronado on 27 December with FOB destination should not be added to the cost of inventory as with FOB destination terms, the goods do not belong to the buyer until they are delivered to their destination by the seller.

Thus, the correct cost of inventory that Coronado should report is $367300

5 0
3 years ago
Other questions:
  • The holder of a life estate has the right to use property for whatever purpose he or she sees fit without regard to the rights o
    8·1 answer
  • True or false? Individual electronic components can be combined into larger groups, called diodes, to increase their usefulness.
    6·1 answer
  • Janine buys swimwear for a chain of apparel stores. At a recent trade show, she took the opportunity to meet with a few vendors.
    11·1 answer
  • Imagine that a researcher wants to test the hypothesis that getting married increases happiness. he finds 100 people who are mar
    9·2 answers
  • I<br>Explain terms Good and<br>examples in each case.<br>Service<br>and<br>give 3​
    8·1 answer
  • Which of the following is true of diversity in the workplace? Multiple Choice Fewer American employees are working as expatriate
    8·1 answer
  • The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges $3995 to rent
    12·1 answer
  • The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound of butter they sup
    12·1 answer
  • What percentage of business in America are home businesses?<br> A. 10%<br> B.33%<br> C.52%<br> D.67%
    5·2 answers
  • Oriole Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales ret
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!