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Simora [160]
2 years ago
6

The management of Wengel Corporation is considering dropping product B90D. Data from the company's accounting system appear belo

w: Sales $ 773,900 Variable expenses $ 402,100 Fixed manufacturing expenses $ 263,200 Fixed selling and administrative expenses $ 224,600 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $186,000 of the fixed manufacturing expenses and $161,200 of the fixed selling and administrative expenses are avoidable if product B90D is discontinued. Required: What would be the financial advantage (disadvantage) of dropping B90D
Business
1 answer:
slamgirl [31]2 years ago
3 0

Answer:

Net loss of $24,600

Explanation:

Sales              $773,900

Variable Expenses ($402,100)

Contribution Margin $371,800

Avoidable Expenses of B90D

Fixed Manufacturing Expenses        $186,000

Fixed Selling and Admin Expenses  %161,200

Total Avoidable expenses                 $347,200

If the product B90D is discontinued,the contribution margin of $371,800 will be lost by Wengel corporation and costs of $347,200 will be saved.

Therefore there will be net loss of $(371,800-347,200) $24,600 to the company if the product is discontinued.

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Complete question:

A. The portion of the funding that should be allocated to tax-free investments

B. The portion of the funding that should be maintained in readily accessible funds such as money market instruments

C. The customer's preference for investing via passively managed index mutual funds or via actively managed mutual funds

D. The investment philosophy and strategies employed by the fund manager of the chosen mutual fund

Answer:

The best answer is D

" The investment philosophy and strategies employed by the fund manager of the chosen mutual fund "

Explanation:

Since this person is rich and potentially in a high taxation role, the allocation of part of the assets in tax free municipal investments should be taken into consideration.  

An emergency fund should always be maintained, so consideration should be given to the amount of funding allocated to money market fund investments. It should also be considered whether the customer believes in the management of passive assets or active assets.

Passive asset managers believe in the use of low-cost index funds -with the idea that nobody can do better than the market over time. Active asset managers believe that the correct "picking" of stocks enables a manager to surpass the market. The actual trading strategies employed by an active manager to achieve his results are not relevant to the portfolio construction.

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True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything els
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True

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by increasing the time customers can pay to 90 days, the amount of cash inflows is likely to reduce. thus, the net cash flow in the next quarter is likely to decrease.

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3 years ago
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7 0
2 years ago
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Answer: <u><em>Addition to existing product line.</em></u>

<em>Since, the  new product is a spicier version of its tomato ketchup aimed at the baby boomer market. But still it lie in accordance with the existing product line.</em>

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Answer:

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2.  Freedom to engage in commercial activities

Explanation:

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In the US, individuals and firms are allowed to own properties. A significant percentage of the factors of production are in the hands of the private sector. Firms and individual influences the production of goods and services because they allocate resources to meet market demand.

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