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EleoNora [17]
3 years ago
12

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:
guajiro [1.7K]3 years ago
3 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.

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Answer:

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c. Cash flow from Investment Activities - Cash Inflow  $30,000.

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Explanation:

The Statement of Cash flows shows 3 types of Cash flow headings which are :

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In this market, it can be concluded that at a price level of $100 per unit, there is <em>C. a shortage of 0.4 million units.</em>

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  • The market demand increased from the equilibrium quantity of 5 million units to 5.2 million while the market supply reduced from the equilibrium quantity of 5 million units to 4.8 million.

  • The shortage of 0.4 million units results from the difference between the quantity demanded (5.2 million) and the quantity supplied (4.8 million) as a result of reduced price.

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Read more about market surplus and shortage at brainly.com/question/24385458

8 0
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Answer:

D. Land and construction costs are comparatively less expensive in Russia than in Canada

Explanation:

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Answer:

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