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
Digiron [165]
3 years ago
6

Roger Rabbit Enterprises is considering whether to discontinue a division that generates a total contribution margin of $66,000

per year Fixed manufacturing overhead allocated to this division is $50,000, of which 19,000 is unavoidable. If Roger Rabbit Enterprises were to eliminate this division, the effect on the company's operating income would be a (n) O A. decrease in total operating income of $35,000 O B. increase in total operating income of $47,000. O C. increase in total operating income of $35,000. O D. decrease in total operating income of $47,000
Business
1 answer:
Kazeer [188]3 years ago
4 0

Answer:

A. decrease in total operating income of $35,000

Explanation:

As provided the contribution generated today = $66,000

Now, when the firm chooses to discontinue operations then, this will be not earned.

Further the operating income earlier from this division shall be:

Contribution - Fixed cost = $66,000 - $50,000 = $16,000

Now, this shall not be earned, thus company will lose $16,000

Thus attributable fixed cost shall be $50,000 - $19,000 = $31,000

Therefore, contribution lost - Fixed cost unavoidable = $66,000 - $31,000 = $35,000 shall be the operating loss now.

Thus, with $35,000 the operating profit will decrease.

You might be interested in
Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply. The APT maintains
Klio2033 [76]

Answer: The APT identifies all relevant factors that affect the realized returns on stocks.

Explanation:

Arbitrage pricing theory (APT) is an idea that has to do with the fact when the linear relationship between the macroeconomic variables and the expected return of an asset are analysed, such assets return can be forecasted.

In arbitrage pricing theory, several risk factors are used in determining prices. It also identifies all relevant factors that affect the realized returns on stocks.

4 0
3 years ago
Salespeople need to possess effective trust-based sales communications skills so that they:
Olegator [25]
Hey there!

For salespeople, its all about relationships and conversations and relationships with people. If you're good friends with someone from your consuming company, you can expect to make good sales as they are acquaintances and would want to buy things from people who they can trust.

Therefore, if you can develop friendships and trust with people from the company who would buy from you, they might just accidentally or purposely let you in on secrets from their company that would maximize sales- and that's always the goal of a salesperson.

Hope this helps!
7 0
3 years ago
A $ 5000 bond with a coupon rate of 6.7​% paid semiannually has eight years to maturity and a yield to maturity of 7.8​%. If int
prohojiy [21]

Answer:

As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67

Explanation:

The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,

coupon payment = 5000 * 0.067 *1/2  =  $167.5

Semiannual YTM = 7.8 *0.5  =  3.9%

Semi annual periods to maturity = 8 * 2  =  16 periods

Old Price = 167.5 * [( 1 - (1 + 0.039)^-16  + 5000 / (1+0.039)^16

Old Price = $4677.19

New semiannual YTM = 8.1% / 2  =  4.05%

New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16

New Price = $4593.67

7 0
3 years ago
Suppose your company sells services of $170 in exchange for $130 cash and $40 on account. Depreciation of $60 relating to equipm
mario62 [17]

Answer and Explanation:

Q2) Calculate the amount that should be reported as net cash flow from operating activities:

Account Receivables = $40

Depreciation = $ 60

Since there is an in Account Receivables therefore it will be negative

Since depreciation is a non cash expense, therefore, it will be added

$60 - $40 = $20 (Net Cash flow from operating activities)

Q3) Amount as net income:

Revenue = $170

Depreciation ($60)

Net Income = $110

Q4)

Net inome = $170

Depreciation = $60

Increase in Accounts Receivables = ($40)

Net Cash flow from operating activities = $190

5 0
3 years ago
Fern wants to work with a group of experts to find the best solution for a quality assurance problem with her company's new prod
horsena [70]

Answer:

Delphi method

Explanation:

Delphi method is defined as a structured communication technique. Initially it was developed as a interactive forecasting method which uses a panel of experts.

This method can also be used for face to face meetings.

Questionnaires are sent to panel of experts, anonymous responses are aggregated and presented to the group after each round. Questionnaires bare often sent through mail.

In this scenario where Fern wants to work with a group of experts to find the best solution for a quality assurance problem with her company's new product, the best option will be to use the Delphi method.

5 0
3 years ago
Other questions:
  • Suppose that McDonalds and Yum Brands are the sole producers of a quadruple-decker chicken and hamburger sandwich. The two firms
    11·1 answer
  • An expectation that people will help those who depend on them is known as the
    8·1 answer
  • The _____ technique consists of having multiple raters above, equal to, and below the manager providing input into a manager's e
    6·1 answer
  • A think local, act local multidomestic type of strategy A. can defeat a global strategy if the think local, act local multidomes
    6·1 answer
  • Jones, who is currently unemployed, is a participant in three means-tested welfare programs: food stamps, rent stamps, and day c
    13·1 answer
  • According to the washington post article the downsides of cheap corn, farmers' 2014 crop revenues were down from prior years, de
    7·1 answer
  • Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1)
    7·1 answer
  • The accountant for Bellows Corp. was preparing a bank reconciliation as of April 30. The following items were identified:
    6·1 answer
  • After solving the profit equation to isolate price, you have:
    7·1 answer
  • True or false: Regulatory ethics include how employees are to handle sensitive data and the consequences of breaking corporate p
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!