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blsea [12.9K]
3 years ago
8

Giant Company has three products, A, B, and C. The following information is available:

Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer:

$24,000

Explanation:

                             Product A      Product B     Product C

sales                        70,000            97000

Variable  cost           37000            51000

Contribution margin 33000            46000

Avoidable cost          10,000           20000

Unavoidable cost       7000             12000         9400

Operating income      16000            14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

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Jim has a full-time job and occasionally designs Web sites for individuals and businesses. At the end of the year, Jim files his
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3 years ago
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Paya
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Answer:

January 1, 2020

Bonds Payable                                          1600000 Dr

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The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,

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