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Dvinal [7]
3 years ago
7

L Corporation produces and sells 15,300 units of Product X each month. The selling price of Product X is $23 per unit, and varia

ble expenses are $17 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $74,000 of the $103,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:
Business
1 answer:
Arlecino [84]3 years ago
5 0

Answer:

<em><u>It would generate a financial disadvantage for 62,800</u></em>

Explanation:

\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]

It would generate a financial disadvantage for 62,800

Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.

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chubhunter [2.5K]
<span>How did trickle-down economics claim to increase government tax revenues? By lowering tax rates. Lower tax rates helps the people by giving them a tax break that the wouldn't otherwise get. Paying taxes becomes expensive and it helps those when taxes decrease because they are able to keep more of their income and afford more than they would be able to otherwise. </span>
5 0
3 years ago
The following information pertained to Azur Co. for the year: Price of goods purchased $102,800 Price discounts 10,280 Freight-i
MrRissso [65]

Answer:

$118,220

Explanation:

The Costs of Goods Sold COGS is calculated using the following formula.

COGS = Beginning inventory + purchases - Ending Inventory

For Azur company

Beginning inventory:  30,840

Ending inventory : 20,560

Net purchases equal Net purchase equal to purchases plus freight-in minus discounts  freight-out are administrative expenses, hence do not feature in COGS

Net purchases =$102,800 + $15,420 -$ 10,280

Net purchases =$107,940

COGS = $30,840 +$107,940 -$20560

COGS = $118,220

7 0
3 years ago
Being a first mover in a market is advantageous for a firm because: Group of answer choices it may have an opportunity to free r
anyanavicka [17]

Answer:

Being a first mover in a market is advantageous for a firm because:

it may gain advantage through proprietary technology.

Explanation:

First mover advantage is a concept used to call the advantage a certain business has by starting to profit from an industry or sector before anyone else. It provides the advantage of experience and learning. Therefore, they gain advantage through proprietary technology by developing it to increase the efficiency of their resources.

4 0
3 years ago
State any five reasons why an entrepreneur may carryout Market survey.​
swat32

Answer:

to know what the other people are interested in, for example they do a survey to see how much of each product they need and the popularity of how many people like the stuff, those are 2 reasons, quantity and I would say popularity 3: get the people to know that enreprenuer cares 4 and five just think about it, I cant really think of anymore

Explanation:

6 0
3 years ago
Read 2 more answers
Changes in accounting estimates are: Multiple Choice Extraordinary items. Accounted for with a cumulative "catch-up" adjustment.
Tom [10]

Answer:

The answer is D. Accounted for in current and future periods.

Explanation:

A change in accounting estimate is an adjustment of the carrying value of an asset or liability arising from reassessing the expected future economic benefits and obligations associated with that asset or liability.

Changes in accounting estimates must be shown in the accounting period in which the estimates are revised and periods after i.e accounted for prospectively. Example is a change in useful life and salvage value of a fixed asset

4 0
3 years ago
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