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
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

You might be interested in
EFG Transportation Company uses the straight-line method to depreciate its delivery truck. Which of the following reflects how r
Stells [14]

Answer:

C.− NA −NA + −NA

Explanation:

As we know that

The depreciation expense is a non cash expense which is to be charged every year and shown in the income statement

Plus it also reduced the value of the asset and stockholder equity as a retained earning but at the same time it increases the expenses due to which the net income reduced and it does not have any impact on the cash flow statements

Hence, the appropriate option is c.

4 0
4 years ago
Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. Ho
Paraphin [41]

Answer:

reduce risk

Explanation:

In the case when hestonis faced an economic downturn so here the expenditures are to be decreased also merticao starts for focusing more on the domestic market so here the loss should be survived due to decreased the risk in teh global trade in the primary market

Hence, the above term should be fit to the given situation

3 0
3 years ago
What is the meaning of the full faith and credit clause
Yuki888 [10]

Hello!

the full faith and credit clause explains the fact that states within the United States have to respect the public acts, records, and judicial proceedings of every other state.

for example, if someone has a driver's license in Vermont, it will be considered valid in new mexico.

or if someone were to get married in California, they would still be married if they move to Virginia.

I hope this helps, and have a nice day!

6 0
3 years ago
As a response to a rapidly changing marketplace, idea electronics found it necessary to reorganize, including a significant down
Arte-miy333 [17]
<span>This will lead to a flattening of the overall organization. This will allow the management to be closer to the end consumer, giving a better overall customer service reputation as well as a cost savings in not having to have as many levels of bureaucracy to go through on the part of the consumer.</span>
4 0
3 years ago
For which of the following random variables would the use of a Normal distribution as a model be a clear error?
Zinaida [17]

Answer:

A. The number of houses that an individual owns

Explanation:

The use of normal distribution in option A would produce an error. That is the number of houses individuals own.

We know that people can own 1 house or more than 1 house or no house at all. But a person can never be said to have less than 0 houses.

Option a is going to be skewed positively. Using Normal distribution would give us an error.

8 0
3 years ago
Other questions:
  • Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep
    9·1 answer
  • An opportunity cost: Multiple Choice Is an unavoidable cost because it remains the same regardless of the alternativ
    9·1 answer
  • The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an
    10·1 answer
  • Ruff Wear expects sales of $560, $650, $670, and $610 for the months of May through August, respectively. The firm collects 20 p
    11·1 answer
  • Waterway Company uses a perpetual inventory system and made a purchase of merchandise on credit from Carla Vista Corporation on
    6·2 answers
  • Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela
    10·1 answer
  • The Solow model demonstrates that A) in the absence of productivity growth, economic growth will turn negative in the long run.
    10·1 answer
  • Sheffield Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is
    12·1 answer
  • Economic models that make unrealistic assumptions may be useful in analyzing some economic problems.
    5·1 answer
  • The rationing function of prices refers to the ability of the competitive forces of supply and demand to establish a price at wh
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!