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In-s [12.5K]
3 years ago
14

The management of Furrow Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year

appear below: Sales $ 920,000 Variable expenses $ 386,000 Fixed manufacturing expenses $ 368,000 Fixed selling and administrative expenses $ 248,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $229,000 of the fixed manufacturing expenses and $190,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be
Business
1 answer:
zzz [600]3 years ago
3 0

Answer:

The financial disadvantage is    -$ 197,000

Explanation:

Sales $ 920,000

Variable expenses $ 386,000

Fixed manufacturing expenses $ 368,000

Fixed selling and administrative expenses $ 248,000

wtih  Product L07E is eliminated

Unfavorable Fixed Manufacturing Expense = 368,000 - 229,000

= $139000

Unfavorable Fixed Selling and Administrative Expense = 248,000 - 190,000

=$58000

so the final disadvantage of eliminating product L07E = -139000-58000

-$ 197,000

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If the sides market (betting on a team against the point spread) for NFL football betting is semi-strong form efficient, what do
Black_prince [1.1K]

Answer:

It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.

Explanation:

Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.

It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.

Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.

4 0
3 years ago
One of the disadvantages of investing in real estate is A) investors need expert help. B) pyramiding. C) equity buildup. D) leve
mixer [17]

There are many disadvantages of investing in real estate and one of it is A) Investors need expert help.

<h3>What is Real estate?</h3>

The investment in property is known as real estate investment. There are many investors who invests in such assets, and earn rentals and capital gains.

The investment in real estate needs expert advice as the person who is the advisor should have the market information so that the perfect price can be quoted in order to purchase or sell an asset.

Learn more about Real Estate at brainly.com/question/27237569

#SPJ1

8 0
1 year ago
Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams
KATRIN_1 [288]

Answer:

Explanation:

The journal entries are shown below:

1. Loss on Investment A/c Dr $1,800        (1,200 shares × $31 - $39,600)

            To GE shares investment A/c $1,800

(Being the adjustment is recorded)

2. Retained earnings A/c Dr $37,200         (1,200 shares × $31)

           To Property Dividends Payable $37,200

(Being the entry is made on declaration date)

3. Property Dividends Payable A/c $37,200

             To GE shares investment A/c $37,200

(Being the entry is made on payment date)

4 0
3 years ago
Suppose a person quits a job earning ​$40,000 per year and starts a business with ​$90,000 withdrawn from a​ money-market accoun
weeeeeb [17]

Answer:

The correct answers are $40,000 and $13,500

Explanation:

The implicit cost of the business is ​$40,000 nothing for the​ entrepreneur's time plus $​13,500 nothing for the​ entrepreneur's funds ​(enter your response as an ​integer)

The implicit cost indicates the cost of an asset rather than selling it or renting it out. In other words, the company has to give up by deciding not to exploit an asset. For this case $40,000

For the other line

15% = 0.15

$90,000 x 15% = $13,500

4 0
3 years ago
Suppose an Exxon Corporation bond will pay $4,500 ten years from now. If the going interest rate on safe 10-year bonds is 4.25%,
Luda [366]

Answer:

The answer is a. $2,967.92

Explanation:

Calculation of prent value

Present value = p* (1+i)^-10

Present value = $4,500 * (1+0.0425)^-10= <u>$2,967.92</u>

4 0
3 years ago
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