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devlian [24]
3 years ago
14

Youngstown Construction plans to discontinue its roofing segment. Last year, this segment generated a contribution margin of $65

,000 and incurred $70,000 in fixed costs. Discontinuing the segment will allow the company to avoid half of the fixed costs. What effect is expected to occur to the company’s overall profit? A. a decrease of $5,000 B. a decrease of $30,000 C. a decrease of $5,000 D. an increase of $30,000
Business
1 answer:
ipn [44]3 years ago
7 0

Answer:

B. a decrease of $30,000

Explanation:

The computation of company’s overall profit is shown below:-

To continue = Contribution margin - Fixed cost

= $65,000 - $70,000

Loss = $5,000

To Discontinue =  Unavoidable fixed cost ÷ 2

= $70,000 ÷ 2

= $35,000

So, Net Loss = To continue (Loss) - To Discontinue

= $5,000 - $35,000

= $30,000

Therefore there is a decrease of $30,000

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Machines J and K have the following investment and operating costs: Year 0 1 2 3 J 11000 1200 1300 K 13000 1200 1300 1400 Which
Naily [24]

Answer:

Machine K

Explanation:

The values can be better computed as:

 Year     0          1           2         3

J         11000   1200      1`300

K         13000   1200     1300    1400

Using the PV Calculator

The Present Value (PV) for each year in Machine J is as follows:

Cashflow    Year      Present Value

11000           0             11000

1200             1              1085.97

1300             2              1064.68

Total                            13,150.65

The effective annual cost = \dfrac{NPV\times r}{1-(1+r)^{-n}}

=\dfrac{13150.65 \times 0.1050}{1-(1+0.1050)^{-2}}

= $7628.16

Using the PV Calculator

The Present Value (PV) for each year in Machine K is as follows:

Cashflow    Year      Present Value

13000           0             13000

1200             1              1085.97

1300             2             1064.68

1400             3             1037.63

Total                            16,188.28

The effective annual cost = \dfrac{NPV\times r}{1-(1+r)^{-n}}

=\dfrac{16188.28 \times 0.1050}{1-(1+0.1050)^{-3}}

= $6566.92

Therefore, machine K is better to buy than machine J.

6 0
3 years ago
Imagine you are a journalist covering a scandal that may destroy a member of congress. you obtain your information from a source
castortr0y [4]
<span>The information you obtained from this source is considered to be On deep Bakcground.
Deep background refers to the information that could not be displayed in the writing but definitely enchance the journalist's view regarding the relevant information. Journalists use this in order to connect a certain clues or find a new lead for their investigation.</span>
6 0
3 years ago
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Ksivusya [100]

Answer:

a. the cost of reducing it's existing pollution by one unit.

Explanation:

Marginal cost refers to the addition to total cost when one more unit of output is produced. Marginal cost in the given case would refer to the additional cost incurred for reducing the current pollution level by one unit.

In the given case, a firm is charged $250 for each unit of pollution emitted under the pollution tax option.

It is also stated that all the firms experience increasing marginal costs of pollution reduction.

This means, as additional units of pollution are reduced, the additional costs would go on increasing.

If a firm finds that, reducing 1 unit of pollution from the current level costs it equal or more than $250, it will opt to pay $250 since, for each subsequent unit of pollution reduction, the additional costs would rise.

7 0
3 years ago
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3 years ago
Stories can serve to reinforce and perpetuate an organization's culture, which is part of the polc function of:
laila [671]
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