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olga2289 [7]
3 years ago
15

Vanik Corporation currently has two divisions which had the following operating results for last year: Cork Division Rubber Divi

sion Sales $600,000 $350,000 Variable costs 250,000 220,000 Contribution margin 350,000 130,000 Traceable fixed costs 160,000 110,000 Segment Margin 190,000 20,000 Allocated common corporate fixed costs 80,000 45,000 Net operating income (loss) $110,000 ($25,000) Because the Rubber Division sustained a loss, the president of Vanik is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been:
Business
1 answer:
Crank3 years ago
3 0

Answer:

$20,000

Explanation:

If the Rubber Division was dropped at the beginning of last year, the financial advantage (disadvantage) to the company for the year would have been: the segment's margin of $20,000

The president considering the elimination of this division is not advisable. As long as none of the allocated common corporate fixed costs could be avoided, If the Rubber Division was dropped at the beginning of last year, the financial disadvantage to the company for the year would have been it's contributed margin that went towards off-setting corporate fixed costs.

Furthermore, if this segment is closed, it would affect the Cork division because it would be reporting a lower net operating income of $90,000 as a result of bearing all the corporate costs alone.

 

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Colorado not even kidding

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What are the answer choices?
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3 years ago
Which of the affirmative action strategies would involve an employer changing the company policy or the way an organization is d
TiliK225 [7]

Identifying and removing employment practices which are working against minority applicants and employees is the affirmative action strategies would involve an employer changing the company policy or the way an organization is decorated.

Affirmative action includes a set of policies and practices within a government or organization which seeks to include particular groups based on their race, gender, sexuality, or nationality.

In no way does affirmative action require an employer to hire an unqualified minority over a qualified non minority, which is important to note. Thus, affirmative actions include outreach efforts, training programs, and other positive steps.  

Hence, affirmative action gives a certain advantage to the minority groups in the recruitment process.

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8 0
2 years ago
Suppose an economy has a law that requires all wages to be adjusted quarterly to reflect changes in the general price level. Thi
8_murik_8 [283]

Answer:

economic (or business) cycles are less severe.

Explanation:

If the wages follow the general price level, it means that they will follow the inflation rate. When the economy is strong and inflation might rise, then the wages should increase accordingly. When the economy is starting to enter a recession then the inflation rate will reduce, so wages will not increase as much (if any increase at all).

This type of economic policy favors expansion cycles since private consumption is the main component of the GDP and also helps when the economy enters a recession because the wages will follow inflation rate which will help make the recession less severe and hopefully shorter.

One basic concept for this to work is that inflation is always a positive number, countries rarely (if ever) go through deflation processes.

8 0
3 years ago
At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit) b
Firlakuza [10]

Answer: $7,740

Explanation:

Given, At December 31, Accounts receivable = $238,000

Allowance for uncollectible accounts = 3% of (accounts receivable)

∴ Allowance for uncollectible accounts = 3% of ($238,000 )

=$(0.03 ×238,000)                [3% = 0.03]

= $ (7140)

= $7,140

Allowance for uncollectible accounts (credit) before any adjustments= $600

The amount of the adjustment for uncollectible accounts = Allowance for uncollectible accounts +  $600

= $7,140 +  $600

= $7,740

Hence, The amount of the adjustment for uncollectible accounts would be: <u>$7,740.</u>

5 0
3 years ago
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