Does anyone know the answer? I give brainliest points the correct answer. Plz answer only if you are sure.

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

avanturin [10]

Answer:

Net income will be $352,500 more if the company continues with Luxury watches only.

Explanation:

Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:

Westfall Watch

Income Statement (Contribution Margin approach)

Particulars $

Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000

Less: Variable expenses

[$255,000 + ($255,000 x 250%)] (892,500)

Contribution Margin 507,500

Less: Fixed Cost (80,000)

Net Income 427,500

Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.

6 0

3 years ago

Ownership of retail outlets may be necessary if: a. products are expended in consumption. b. products are inexpensive. c. the pr

balu736 [363]

Answer:

E. The required standards of after-sales service for complex products are to be maintained.

Explanation:

The standard of after sale service is necessary in a case like this because after sales service is said to be all you need to know regarding or concerning the product you bought or the services that has been rendered to you.

In as much as a market can be any arrangement where buying and selling is been done and the online platform or medium is pulling through in a lot of sales in recent times, retail outlets show not to be always necessary but sometimes can be necessary in a critical case such as the above scenario. Here, the required standards of after sales services for some products which are complex is to be maintained, retail outlets are said to be possibly necessary.

7 0

4 years ago

Calculate the present value of the following: a-1. Annual payment of $800 for 10 years at 5% interest. (Do not round intermediat

kipiarov [429]

Answer:

a-1 Present value = 6,177.39

a2- Present Value =6,227.79

a3- Choose the payment stream with the highest present value = a2

b1- Present Value=3,353.98

b2-Present Value=2,805.28

b3-Choose the payment stream with the highest present value = b1

Explanation:

a-1 describes an ordinary annuity whose present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}$

where PMT=$800; i= 5%, n= 10

$Present value =800*\frac{[1-(1+0.05)^-^1^0]}{0.05}$ = 6,177.39

a2- $Present value =600*\frac{[1-(1+0.05)^-^1^5]}{0.05}$ = 6,227.79

a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.

b1- $Present value =800*\frac{[1-(1+0.20)^-^1^0]}{0.20}$ = 3,353.98

b2- $Present value =600*\frac{[1-(1+0.20)^-^1^5]}{0.20}$ =2,805.28

b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.

3 0

3 years ago

13) Suppose that there is a positive aggregate demand shock and the central bank commits to an inflation rate target. If the com

AveGali [126]

Answer:

C) over time inflation will fall back down to the inflation target.

Explanation:

In the scenario, there is a positive aggregate demand shock which will lead to inflation because prices of goods will rise as aggregate demand increases with supply being unchanged

<u>A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. </u>

<u>Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.</u>

7 0

3 years ago

All else constant how would an increase in annual depreciation affect a project's operating cash flow?

MatroZZZ [7]

Answer:

The answer is 'will increase the project's operating cash flow.

Explanation:

The project's operating cashflow has a direct or positive relationship with the annual depreciation expenses. This means the increase in annual depreciation will increase the project operating cash flow and likewise a decrease in annual depreciation will decrease the project's operating cash flow.

Depreciation is the result of wear/tear on the machine.

6 0

3 years ago