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CaHeK987 [17]
3 years ago
7

7. The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookb

ook Travel Book Classics Total Sales $65,000 $164,000 $55,000 $284,000 Cost of goods sold 37,000 67,000 20,000 124,000 Contribution margin 28,000 97,000 35,000 160,000 Order and delivery processing 21,000 25,000 11,000 57,000 Rent (per sq. foot used) 5,000 4,000 4,000 13,000 Allocated corporate costs 10,000 10,000 10,000 30,000 Corporate profit $ (8,000) $58,000 $10,000 $60,000 If the travel book line had been discontinued, corporate profits for the current year would have decreased by ________. A) $97,000 B) $72,000 C) $68,000 D) $58,000
Business
1 answer:
vekshin13 years ago
8 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Travel Book

Sales= $164,000

Cost of goods sold= (67,000)

Contribution margin= 97,000

Order and delivery processing (25,000)

Net income= 72,000

Rent and allocated corporate costs remain constant in both decisions (drop or not). Therefore, they are irrelevant.

<u>Now, if the travel book product line was discontinued, the company's net income would have decreased by $72,000</u>

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Lapatulllka [165]

Answer: $1600

Explanation:

From the information given, it can be noted that while Ryan is vested, on the other hand, Todd isn't vested.

Therefore, since the vacation is for two weeks, the amount of vacation expense and liability should be reported will be for Ryan alone and this will be:

= $800 × 2

= $1600

In this case, service has already been rendered ans there's accumulated rights, therefore a vacation expense and liability of $1600 should be reported.

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2 years ago
The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summ
Fynjy0 [20]

Answer:

d) It is a use of cash, and will be shown in the investing section as a subtraction.

Explanation:

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6 0
3 years ago
Steven is trying to save for a new car. What does he need to created to help him decide how much of his income needs to be used
Andrej [43]

Steven needs to create a budget that will list all of his expenses each month with regards to the income he brings in. Once Steven sits down and creates the budget he will see the money that is left over once he is done paying all of his necessary bills. The money that is left over can be saved to purchase a new car.

7 0
3 years ago
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Rouse Corporation's December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000
Scorpion4ik [409]

Answer:

See bellow

Explanation:

With regards to the above, Rouse total stockholder's equity is computed as;

= Preferred stock + common stock + paid in capital in excess of par (preferred stock and common stock) + retained earnings - Treasury stock

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3 years ago
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SVETLANKA909090 [29]

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Explanation:

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