1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
JulsSmile [24]
3 years ago
15

Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The

following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount): Wimpy Mild Medium Hot Atomic Contribution margin $ (2,000 ) $ 45,000 $ 35,000 $ 50,000 $ 162,000 Segment margin $ (16,000 ) $ (5,000 ) $ 7,000 $ 10,000 $ 94,000 Allocated common fixed expenses $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 Segment margin less allocated common fixed expenses $ (26,000 ) $ (15,000 ) $ (3,000 ) $ 0 $ 84,000 Toxemia expects similar operating results for the upcoming year. If Toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue?
Business
1 answer:
lisabon 2012 [21]3 years ago
8 0

Answer:

Wimpy and mild

Explanation:

As we can see in the question that the Wimpy and mild contains the negative margin i.e ($16,000) and ($5,000)

And the segment margin refers to the margin through which the net profit or net loss could arrive by considering the business part

So in this case the segment margin is more powerful as compare to the Segment margin less allocated common fixed expenses

You might be interested in
Mercury Inc. purchased equipment in 2019 at a cost of $497,000. The equipment was expected to produce 580,000 units over the nex
Ivan

Answer:

1.

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation               226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation              226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

Explanation:

We first need to calculate the carrying value of the equipment at the date of disposal. The carrying value is calculated as follows,

Carrying value = Cost  -  Accumulated depreciation

Depreciation 2019  =  (497000 - 33000) * 83000 / 580000

Depreciation 2019  = 66400

Depreciation 2020  =  (497000 - 33000) * 133000 / 580000

Depreciation 2020  = 106400

Depreciation 2021  =  (497000 - 33000) * 67000 / 580000

Depreciation 2021  = 53600

Carrying value = 497000  -  [ 66400 + 106400 + 53600 ]

Carrying value = $270600

1.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 253600  -  270600

Gain or (Loss) on sale = (17000)  Loss

2.

Cash                                                     253600 Dr

Accumulated Depreciation                226400 Dr

Loss on Sale                                        17000 Dr

         Equipment                                         497000 Cr

3.

Gain or (Loss) on sale = Sales price  -  Carrying Value

Gain or (Loss) on sale = 280000  -  270600

Gain or (Loss) on sale = 9400 Gain

4.

Cash                                                    280000 Dr

Accumulated Depreciation                226400 Dr

         Gain on Sale                                      9400 Cr

         Equipment                                         497000 Cr

6 0
3 years ago
I am thirteen and need to make money what should I do?
antiseptic1488 [7]

Answer:

babysit- which i doubt is a good idea rn

walk dogs

shovel snow from driveways

Explanation:

5 0
2 years ago
Read 2 more answers
Consider the following probability distribution for stocks A and B: State Probability Return on Stock A Return on Stock B 1 0.10
Elina [12.6K]

Answer:

<em>The expected rates of return of stocks A and B:</em>

E(RA) = 0.1*((13%) + 0.2*(12%) + 0.3*(14%) + 0.2*(15%)

E(RA) = 13.2%

E(RB) = 0.1*(8%) + 0.2*(7%) + 0.2*(6%) + 0.3*(9%) + 0.2*(8%)

E(RB) = 7.7%

<em>The standard deviation of stocks A and B are:</em>

Var(RA) = [0.1*(10%-13.2%)2^ + 0.2*(13%-13.2%)^2 + 0.2*(12%-13.2%)^2 + 0.3*(14%-13.2%)^2 + 0.2*(15%-13.2%)^2]^1/2

Var(RA) = 1.5%

Var(RB) = [0.1*(8%-7.7%)^2 + 0.2*(7%-7.7%)^2 + 0.2*(6%-7.7%)^2 + 0.3(9%-7.7%)^2 + 0.2*(8%-7.7%)^2]^1/2

Var(RB) = 1.1%

5 0
2 years ago
Tropetech Inc. has an expected net operating profit after taxes, EBIT(1 – T), of $2,400 million in the coming year. In addition,
cupoosta [38]

Answer:

FCF = $1,995 million

Explanation:

DATA

EBIT(1-T) = $2,400 million

Net Capital Expenditure = $360 million

Net operating working capital (NOWC) = $45 million

Free cash flow (FCF) expected to generate over next year can be calculated as

FCF = EBIT(1-T) - Capital Expenditure - Net operating working capital (NOWC)

FCF = $2,400 million - $360 million - $45million

FCF = $1,995 million

8 0
2 years ago
Often the life of a whistleblower involves tremendous ridicule and scrutiny from others, despite doing the "right thing." Descri
Tamiku [17]

Answer:

Find the explanation below.

Explanation:

Whistleblowing is the act of raising an alarm over unethical or illegal acts committed by people holding political or public service positions. The whistleblower is most times motivated by the quest to end the injustice or negative impact suffered by the disadvantaged group. Whistleblowers suffer tremendous obstacles from the people they have exposed because;

1. The offender's source of illegal income has been withdrawn. Just like humans fight for survival when their source of livelihood is taken away, so would a person fight against whatever that tends to take away their illegal source of wealth.

2. Fear of being seen in a negative light by others. The person committing a crime usually puts up an act of innocence, thus presenting himself as a morally upright person. When the whistleblower tries to expose their true identity, it is only expected that they would try to shut him up.

5 0
3 years ago
Other questions:
  • What is a standard of living?
    9·1 answer
  • Adam elects the accrual method of accounting for his business.
    15·1 answer
  • What is the rate at which goods and services are produced based upon total output given total inputs?
    5·1 answer
  • Outsourcing means that :
    10·1 answer
  • Harper Company lends Hewell Company $13,200 on March 1, accepting a four-month, 6% interest note. Harper Company prepares financ
    9·1 answer
  • Resort Hotel Company replaces Sharon, a forty-five-year-old employee, with Terry. Sharonfiles a suit against the employer under
    5·1 answer
  • Assume that three identical units are purchased separately on the following three dates and at the respective costs:________. Ju
    15·1 answer
  • Financial markets bring together people interested in purchasing or selling <br> what?
    10·1 answer
  • Ji-woo has a new credit card. She wants to use it for online shopping. What are three things that make this a poor choice
    12·1 answer
  • Bank Reconciliation On July 31, Sullivan Company's Cash in Bank account had a balance of $9,381.58. On that date, the bank state
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!