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Nataly [62]
3 years ago
11

Exercise F The luggage department of Sampson Company has revenues of $1,000,000; variable expenses of $250,000; direct fixed cos

ts of $500,000; and allocated, indirect fixed costs of $300,000 in an average year. If the company eliminates this department, what would be the effect on net income
Business
1 answer:
Yanka [14]3 years ago
3 0

Answer:

Decrease by $250,000

Explanation:

Calculation for what would be the effect on net income.

We would be using Differential Analysis method to find the effect on the net income

Differential Analysis

Continue with Luggage Department; Eliminate Luggage Department; Effect on Income

Sales

1,000,000 0 -1,000,000

Variable cost

-250,000 0 250,000

Direct fixed costs

-500,000 0 500,000

Indirect fixed costs

-300,000 -300,000 0

Net Income

-$50,000 -$300,000 -$250,000

Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000

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The answer would be
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2 years ago
Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man
Simora [160]

Answer:

Cash Dr 10975  

     To Sales  $10,000  

     To  Sales Tax Payable $975 ($10,000 × 9.75%)

(Being the cash is recorded)

Explanation:

The journal entry is shown below;

Cash Dr 10975  

     To Sales  $10,000  

     To  Sales Tax Payable $975 ($10,000 × 9.75%)

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For recording this we debited the cash as it increased the assets and credited the sales and sales tax payable as it also increased the revenue and liabilities

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3 years ago
Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. T
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Answer:

Total contribution margin= $1,884,180

Explanation:

Giving the following information:

Direct Materials 150

Direct Labor 28

Variable Manufacturing Overhead 25

Variable Selling 16

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Direct material cost= 150*1.1= $165

<u>First, we need to calculate the unitary contribution margin:</u>

Unitary contribution margin= selling price - total unitary variable cost

Unitary contribution margin= 420 - (28 + 25 + 16 + 165)

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3 0
3 years ago
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8
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Answer:

The journal entries for all transactions are as follows;

Explanation:

June 8. Bad Debts Expense            Dr.$8,440

             Accounts-Receivable-Kathy Quantel  Cr.$8,440

Aug 14. Bank                Dr.$3,000

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             Accounts Receivable-Rosalie Oakes            Cr.$12,500

Oct 16. Accounts-Receivable-Kathy Quantel    Dr.$8,440

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Dec 31.   Bad debt Expense     Dr. 24,955

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6 0
3 years ago
I'll give you brainiest please help me.
mars1129 [50]
Being involved in extracurricular activities can help you stand out on your college applications because it shows that you are skilled in more than 1 thing. Depending on the extracurricular you’re taking, you could be very good at strategic and critical thinking. This could be helpful in your future. Colleges do what the best of the best. Being involved in extracurricular activities also can show that you can take on more than 1 task. A lot of people can’t multitask or have a short attention span. This could be really good.


2. If I could create my own club or organization it would be one that explores individuals talents. Not a lot of people are sure what they want to be when they get older and I’d like to help them with that. Not any skills to be exact. The requirements would be to be serious about this, having manners, self-control, bring able to know what to respond to and what not, getting help instead of taking things into their own hands, and good listening.

3. Yes. You could use my first response as the answer to this question. There’s too many reason why getting into extracurricular activities is beneficial to getting the career of your dreams.9
6 0
2 years ago
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