Answer:
c. (140,000)
Explanation:
Effect on net income of dropping the North Division:
Sales $(900,000)
Variable expenses <u>$450,000</u>
Contribution margin $(450,000)
Traceable fixed expenses <u>$260,000</u>
Effect on net income <u>($190,000)</u>
Since the North Division currently have Net operating income (loss) of ($50,000), so therefore, after dropping the North Division, the overall company net operating loss will be $140,000 ($50,000 - $190,000).
Answer:
the process by which businesses or other organizations develop international influence or start operating on an international scale.
Explanation:
Yeah
Answer: $64000
Explanation:
The amount that should be charged to the repair and maintenance expense in year 4 will be calculated thus:
Continuing and frequent repairs = $40,000
Add: Repainted the plant building = $10,000
Add: Partial replacement of roof tiles = $14,000
Repair and maintenance expense = $64,000
Answer and Explanation:
We will start from the point where the manager has three options over here we see that the payoffs for doing nothing is $110000, $160000 for subcontracting and $120000 for 2 machines bought, in this case subcontracting gives the best outcome of $160000.
Now if we move back on decision tree where two machines are bought and if demand is low then payoff is 0.2 * 80000 + 0.8 * 160000 for high demand = 16000 + 128000 = $144000.
Now if decide to buy only one machine then the payoff are 0.2 * 100000 + 0.8* 160000 (value for subcontracting)
= 20000 + 128000 = $148000
In case of event 1 we can see the benefits can be either $144000 or $148000 calculated above.
Se we see the best outcome is when the manager subcontracts and the benefit is $160000.
Best option is to buy no machines and the expected payoff is $160000.
