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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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5 0

3 years ago

Assume the sales price is $10 per unit, variable cost is $5 per unit, and fixed cost is $1,000. How would the break-even point i

Oxana [17]

Answer:

it would increase by 300 units

Explanation:

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

Initial breakeven = 1000 / (10 - 5) = 200

New breakeven = 1000 /(10 - 8) = 500

Change in breakeven = 500 - 200 = 300

8 0

3 years ago

Read 2 more answers

Management in the News In April 2010, the explosion of British Petroleum’s (BP) Deepwater Horizon oil drilling rig and the accom

Firlakuza [10]

Answer:

Event Dimension BP stock prices falling 25% during the first month after the oil spill. ECONOMIC.

The Economic dimension of the environment deals with production in the economy which means that it deals with business entities and the financial system. Dimension BP stock price falling therefore falls under her.

Using deep-se submersibles to take pictures of the oil leak a mile below the surface of the water. TECHNOLOGICAL.

The Technological dimension of the environment refers to anything related to the use of technology and using deep-sea submersibles to take pictures of the leak below the surface of the water will definitely fall under technology.

People moving from Louisiana to Oklahoma to avoid the effects of the spill. SOCIOCULTURAL.

Sociocultural dimension deals with human beings and how they relate with themselves and the environment around them. People therefore moving from Louisiana to Oklahoma will fall under here.

3 0

3 years ago

If the CPI rises to 150 from 120, then prices have

exis [7]

Answer:

B) risen 25 percent.

Explanation:

The inflation rate is the rate at which overall prices are increasing in the economy in a period. It is expressed as a CPI value.

Given CPI for different periods, inflation can be calculated using the formula below.

Inflation = new CPI - old CPI x 100

old CPI

In the case

The inflation rate will be 150- 120 x 100

120

=30/120 x 100

=25%

3 0

4 years ago

Unlike sole proprietorship and partnerships, the corporation has a life independent of its owners and officers. true or false

musickatia [10]

Unlike sole proprietorship and partnerships, the corporation has a life independent of its owners and officers. This statement is true.

<h3>What is Partnership?</h3>

In a partnership, parties who are referred to as business partners agree to work together to further their shared objectives. Individuals, companies, interest-based organizations, schools, governments, or combinations of these may be the partners in a partnership.
Organizations may work together to expand their reach and increase the likelihood that each will succeed in reaching their goals.
A partnership may solely be controlled by a contract, or it may issue and hold stock. Business: Two or more businesses collaborate in a joint venture, a buyer-supplier arrangement, a strategic alliance, or a consortium to: I work on a project (such as an industrial or research project) that would be too difficult or risky for a single entity; and (ii) join forces to have a stronger position on the market.

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5 0

2 years ago