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3 years ago

The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:

Business

1 answer:

weqwewe [10]3 years ago

4 0

Answer:

Company should not eliminate the North division.

Explanation:

Division B is individually making loss. Overall the company is making profit of $50,000.

After eliminating the North division the overall profit will be converted into the loss of $140,000, because the common corporate expenses were shared by the both divisions, eliminating one cause the whole expense to be allocated to a single division.

Company should not eliminate the division as it will increase the total loss.

Working for on which decision is based is attached with this answer please find it.

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Luxguard Home Paint Company produces exterior latex paint, which it sells in one-gallon containers. The company has two processi

marta [7]

The cost of ending work in process inventories and of units transferred out of the Base Fab Department in April is $851,00 and $999,000and $1850,000

The calculation of this question and working of solutions is in tabular form which is attached to this answer.

What is Cost?

The cost is of two types - Variable and Fixed . Variable costs exchange based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. constant costs continue to be the same no matter production output. fixed charges may additionally include hire and rental bills, coverage, and interest payments.

Learn more about cost brainly.com/question/13165105

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5 0

2 years ago

Suppose that five years ago you borrowed $300,000 using a 30-year fixed-rate mortgage with an annual interest rate of 10% with m

Elenna [48]

Answer:

Please check the explanation below.

Explanation:

Rate of Interest =10% or 0.83% monthly

Monthly Payment under this plan=PMT(0.0083, 360, 300000) =$2,632.71

Loan outstanding after 5 years of payments =$289,723

New Interest Rate =8.5% or 0.7083% monthly

Balance Tenure= 25 years

New Monthly Installment =PMT(0.007083,300,289723) =$2,332.93

Monthly savings in installment reduction =$2,632.71 - 2,332.93 =$299.78

a. Net present value of refinancing = -0.05x289,723 + 299.78x{(1-(1+0.007083)-300)/0.007083}

= -14,486.15 + 299.78x124.1886

= -14,486.15 + 37,229.25

= 22,743.10

b. With new monthly installment, balance outstanding at the end of 8th year =$278,258

Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

= -14,486.15 + 299.78x31.68

= -14,486.15 + 9,446.46

= -4,989.68

c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

0.3423 = 1-(1.007083)-n

(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

3 0

3 years ago

The following information is available for Blossom Company:

Aleonysh [2.5K]

Answer:

Total Assets = $124,510

Total Liabilities = $38,320

Total Stockholders' equity = $86,190

Explanation:

Blossom Company

Balance sheet

As at December 31, 2022

Assets

Current assets

Cash $6,390

Accounts receivable 2,100

Supplies 3,800

Inventory 2,920

Total current asset $15,210

Non-current asset

Equipment (net) 109,300

Total assets 124,510

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable $4,500

Interest payable 670

Unearned service revenue 820

Salaries and wages payable 830

Total current liabilities $6,820

Long-term liabilities

Notes payable 31,500

Total liabilities $38,320

Stockholders' equity

Common stock 58,900

Retained earnings (Balancing amount) 27,290

Total stockholders' equity $86190

Total liabilities and stockholders' equity $124,510

8 0

3 years ago

If the demand for a product decreases, what is likely to happen?

matrenka [14]

I m pretty sure the product supply would grow then the price would drop

5 0

3 years ago

Assume the firms operating in an oligopolistic market experience a relatively small change in marginal costs. According to the k

leonid [27]

Answer:

B) Leave the equilibrium price unchanged.

Explanation:

Oligopolistic market is the arrangement where few companies offer same product to the customers. There is very less competition in the market so every supplier has fair chance for operating their business successfully. The kinked demand model curve in oligopolistic market would leave the equilibrium price unchanged.

3 0

3 years ago