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Luba_88 [7]
3 years ago
9

Incremental Analysis for Discontinuation Decision Total Contribution margin lost if special oats is discontinued Less: Fixed cos

t savings if special oats is discontinued Operating income if special oats is discontinued
Business
1 answer:
Scilla [17]3 years ago
6 0

Incremental Analysis for Discontinuation Decision can have two way affect to the Business

Explanation:

1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues

Less:

2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.

Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.

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Why must food service operators pay attention to detail and watch every penny?
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According to this table, what will happen when the price of a pair of shoes rises from $100 to $125? The cost to make a pair of
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Moss County Bank agrees to lend the Cullumber Company $695000 on January 1. Cullumber Company signs a $695000, 6%, 9-month note.
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Answer:

The interest on notes is calculated as follows

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Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account

                                 General Entry

Date         Account Title and Explanation     Debit            Credit

30 Sep.    Notes payable                                $695,000

                Interest payable                              $31,275

                Cash                                                                      $726,275

                (To record the amount to be paid at maturity)

6 0
3 years ago
Growland is a country that trades only with Canada. Last year, the value of exports from Growland to Canada was $200 million. Gr
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Answer:

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