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
xxTIMURxx [149]
3 years ago
12

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be

low:Sales $938,000Variable expenses $413,000Fixed manufacturing expenses $525,000Fixed selling and administrative expenses $352,000All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $215,000 of the fixed manufacturing expenses and $126,000 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued.What would be the effect on the company's overall net operating income if product V41B were dropped?
Business
1 answer:
natita [175]3 years ago
8 0

Answer:

if dropped the differential loss will be of 184,000

the income will decrease 184,000

It is better to continue with the production.

Explanation:

\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$Sales&938,000&-&-938,000\\$Variable&-413,000&-&413,000\\$Avoidable&-341,000&-&341,000\\$Allocate cost&-536,000&-536,000&-\\$Result&-352,000&-536,000&-184,000\\\end{array}\right]

If dropped sales and variable expenses will be zero.

We will determinate the avoidable cost:

215,000 manufacting + 126,000 S&A = 341,000

<u>and the allocated cost will be:</u>

total fixed cost - avoidable cost

(525,000+352,000) - 341,000 = 536,000

You might be interested in
The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th
sveticcg [70]

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

4 0
3 years ago
Select the correct answer from each drop-down menu.
ZanzabumX [31]

Nepal is multi media is co on of this

5 0
2 years ago
The process by which different individuals and units perform specific parts of the larger task is called ? user: the procedures
Elena-2011 [213]
Coordination is the right answer
7 0
3 years ago
Read 2 more answers
Sweetpea Corporation sold a tiller that it used in its landscaping business. The tiller cost $5,000 and Sweetpea had taken $2,00
astraxan [27]

Answer:

Sweetpea have a gain of $1,000

Explanation:

When the depreciable property is sold, then the gain or loss will be computed to the extent on the difference among the selling price and the adjusted basis.

So, the adjusted basis will be

= Cost of the basis - Depreciation

= $5,000 - $2,000

= $3.000

Therefore,

Gain or Loss = Selling Price - Adjusted basis

                     = $4,000 - $3,000

                     = $1,000

Hence, it is a gain of $1,000.

6 0
3 years ago
Molly and jason were married. their only "dependent" was spot, their black standard poodle. jason died in 2011. assuming she doe
STALIN [3.7K]
I believe The only legal filing status for Molly will be a qualifying widow.
Hope this helps !
3 0
3 years ago
Other questions:
  • Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur
    12·2 answers
  • Martin was named "employee of the month" for his outstanding customer service. according to maslow, this award may help satisfy
    8·1 answer
  • Which contingency of power are unions mainly applying by going on strike at a critical time in the company's business cycle
    6·1 answer
  • Suppose that Tony Hsieh noticed that Zappos’s customers were no longer willing tov pay full retail prices on shoes. What actions
    12·1 answer
  • The risk-free rate of interest, kRF, is 6 percent. The overall stock market has an expected return of 12 percent. Nutshell, Inc.
    6·1 answer
  • A company issued 6-year, 8% bonds with a par value of $450,000. The market rate when the bonds were issued was 7.5%. The company
    8·1 answer
  • Crystal Glasses recently paid a dividend of​ $2.70 per​ share, is currently expected to grow at a constant rate of​ 5%, and has
    15·1 answer
  • Here is a linear demand function: Q = 10 -0.5P. Find its price function by inverting the demand function. Then find its total re
    8·1 answer
  • Price Reading Quiz QUESTION 3 of 10: is the total revenue of a business less all expenses over a period of time. Oa) Profit O b)
    14·1 answer
  • Ginny is considering an investment costing $55,000 that has cash flows of $35,000 in Year 2, $36,000 in Year 3, and −$5,000 in Y
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!