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vesna_86 [32]
3 years ago
6

Campbell Transport Company divides its operations into four divisions. A recent income statement for its West Division follows.

CAMPBELL TRANSPORT COMPANY West Division Income Statement for Year 3 Revenue $ 540,000 Salaries for drivers (390,000 ) Fuel expenses (54,000 ) Insurance (74,000 ) Division-level facility-sustaining costs (44,000 ) Companywide facility-sustaining costs (134,000 ) Net loss $ (156,000 ) Required By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? Assume that West Division is able to increase its revenue to $600,000 by raising its prices. Determine the amount of the increase or decrease that would occur in companywide net income if the segment were eliminated. Should West Division be eliminated if revenue were $600,000? What is the minimum amount of revenue required to justify continuing the operation of West Division?
Business
1 answer:
Leona [35]3 years ago
8 0

Answer:

Explanation:

1) Revenue  $540,000

less: Salaries for drivers  (390,000)

Fuel expense  (54,000)

insurance  (74,000)

Division line  (44,000)

Net loss  (22,000)

If division is eliminated the income would increase by $22,000

So it should be eliminated.

2) Decrease in income = $600,000 - ($540,000+$22,000)

= $38,000

3) What is the minimum amount of revenue required = 600,000 - 38,000 = $562,000

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disa [49]

Answer:

Option C is correct one.

Interest expense 773

Discount on bonds payable 73

Cash 700

Explanation:

2016 interest expense  = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate

= $9,668 x 08

= $773

Cash interest payment

= maturity value of the bond x the stated interest rate = $10,000 x .07

= $700  

Amortization of discount on bonds payable

= interest expense - interest cash payment

= $773 - $700.

= $73  

3 0
3 years ago
merchandise is sold for cash. the selling price of the merchandise is $2,600, and the sale is subject to a 6% state sales tax. t
love history [14]

The journal entry for the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

The government levies a consumption tax known as a sales tax on the purchase of goods and services. At the point of sale, a standard sales tax is imposed, collected by the retailer, and paid to the government. Companies must first apply for a sales tax permit from their state's department of taxation in order to be able to collect sales tax from customers. Every time a customer makes a purchase, businesses collect sales tax, which they subsequently monthly or quarterly send to the state.

As the selling price of the merchandise is $2,600 and the state sales tax is 6%, this means that 6% of $2,600 has to be paid to the state governing body.

Sales tax = 6% of 2600

Sales tax = 6/100 × 2600

Sales tax = 0.06 × 2600

Sales tax = $156

Therefore; the entry to journalize the sale would include a credit to sales tax payable for $156 if the selling price of the merchandise is $2600.

To know more about  sales tax refer:

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8 0
1 year ago
Ming is a manager for a large foodservice company. She has the authority to determine whether or not the company should expand i
Alik [6]

Answer:

Strategic

Explanation:

If Ming is a manager for a large company and has the authority to determine whether or not the company should expand into new regions and/or expand the company's product line, Then the level of management that Ming represents is Strategic Management

Strategic management involves setting objectives, <u>analyzing the competitive environment</u>, analyzing the internal organization, evaluating strategies, and ensuring that management rolls out the strategies across the organization.

Business expansion decisions are taken by the highest level of management based on their analysis of the competitive environment

8 0
3 years ago
If you put money into a compound interest account with 7.2% interest rate how many years will it take to double your money?
Firlakuza [10]

Answer:

It would take 2 years

Explanation:

7x2=14 witch is the 7.2% interest rate so it would take two years 2 double your money

4 0
2 years ago
Company FIN3610-FTRA has a six-year project that requires an initial investment of $30,000. Every year, the project will pay fix
lara31 [8.8K]

Answer:

909.09

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

$20,000 / 58 - 36 = 909.09

4 0
3 years ago
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