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masha68 [24]
3 years ago
13

O'Neill, Incorporated income statement for the most recent month is given below. A proposal has been made that will lower variab

le expenses in Store A to 62% of sales. However, this reduction can only be accomplished by an increase in fixed expenses of $8,000. If this proposal is implemented and sales remain constant, overall company net operating income should: Select one: a. remain the same b. decrease by $4,200 c. increase by $2,000 d. increase by $8,000

Business
1 answer:
topjm [15]3 years ago
4 0

Answer:

c. increase by $2,000

Explanation:

The computation of company net operating income is shown below:-

New amount for Store A variable expenses = Sales percentage × Store A sales

= 0.62 × $100,000

= $62,000

Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses

= ($72,000 - $62,000) - $8,000

= $10,000 - $8,000

= $2,000 increase

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Swimmers Co. operates a set of water parks with leisure facilities for families in Aqualandia. During January 20X1, Swimmers acq
ElenaW [278]

The Swimmers Co.'s Boat's value in use (net present value) is Eur 321,221.

Data and Calculations:

Pre-tax discount rate = 5% p.a., excluding inflation

Inflation rate = 2% p.a.

Inflated discount rate = 7% (5% + 2%)

Salvage value = Eur 20,000

<u>Projected cash inflows:</u>

Year           Cash Inflows    Discount Factor     Discounted Cash flows

20X4         Eur 72,000              0.935                     $67,320

20X5        Eur 69,000               0.873                      60,237

20X6        Eur 64,000               0.816                      52,224

20X7        Eur 59,000               0.763                      45,017

20X8       Eur 52,000               0.666                      34,632

20X9       Eur 45,000               0.623                      28,035

20X10     Eur 38,000               0.582                        22,116

20X10     Eur 20,000              0.582                         11,640

Total discounted cash flows                         Eur 321,221

Thus, the Swimmers Co. will calculate the boat's value in use as Eur 321,221, taking into account all the discounted cash inflows.

Learn more: brainly.com/question/17185385

6 0
2 years ago
Use your newly found knowledge to explain credit card disclosure statements to someone who has never received one. Write a one t
Anastaziya [24]

Answer:

Credit card disclosure statements include almost everything you need to know about credit cards. The statements include the APR rates, Annual Fee, Late Fees, and Introductory Rates. Annual Percentage Rates are one of the most important things to do with credit cards. They are the costs of the loan each year expressed as a percentage. Loans are used for pretty much everything nowadays. Most people only use them for things like buying cars or buying a house. Lenders for loans often check your credit score, years of employment and other things. Having credit card debt affects your ability to get loans. That is why it’s important to pay off credit cards on time rather then late. Disclosure statements help everyone figure out the information on their credit card and their payments.

7 0
3 years ago
In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. T
Mamont248 [21]

Answer:

D) 137000 39000

Explanation:

Allen  140,000

Daniel 40,000

Capital before admission 180,000

share ratio 3:1

Capital after admission:

180,000 + 40,000 = 220,000

David participation: 20%

220,000 x 20% = 44,000

David investment  40,000

goodwill: 4,000

There is a difference in goodwill which will be supported for the old partner as their current share ratio

Allen 4,000 x 3/4 = 3,000

Daniel 4,000 x 1/4 = 1,000

Capital after David admission:

140,000 - 3,000 = 137,000

40,000 - 1,000 = 39,000

6 0
3 years ago
The Coffee Collective is seeking to identify customers who want a unique coffee drinking experience and are open to a loyalty re
hammer [34]

Answer:

market segment

Explanation:

We know that a market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

In this example, The Coffee Collective is seeking to discover target customers who share particular coffee drinking habits and who are open to loyalty reward programs. Thus, they aim to find potential customers who share common characteristics.

7 0
3 years ago
The lm curve:_____.
Feliz [49]

The LM curve slopes upward. The IS-LM model explains how aggregate real goods market and financial markets interact to balance the macroeconomy's interest rate and overall output. Investment Savings-Liquidity Preference-Money Supply, or IS-LM. The model was created as a formal graphic illustration of a Keynesian economic theory premise.

The letters "IS" stand for one curve on the IS-LM curve, while "LM" stands for an other curve. The IS-LM framework can be used to explain how shifts in market preferences affect the equilibrium values of the GDP and market interest rates. The IS-LM model is neither realistic or precise enough to be a helpful instrument for recommending economic policy.

To learn more about LM curve, click here

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5 0
1 year ago
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