Answer:
The effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits
Explanation:
In order to calculate the effect on Morgantown's overall profit we would have to make the following calculations:
Contribution margin per unit for Lock Division = Selling price – Variable costs = $40 - $22 = $18
Contribution lost by lock division if Cabinet division buys from outside = $18 * 10,000 = $180,000
Cost per unit saved by Cabinet division = $40 - $36 = $4
Total cost saved by cabinet division = $4 * 10,000 = $40,000
Net decrease in profit = Contribution lost – Cost saved = $180,000 - $40,000 = $140,000
Therefore, the effect on Morgantown's overall profit is $140,000 decrease in Morgantown's profits.
Answer:
e. Personal value equation
Explanation:
To check that the product the company is offering to the customers whether the product is financially feasible or not, the companies individually take the opinion of the customer about the product by delivering and communicating them personally so that they actually know about their product.
Customer perception is different about the product they want to buy. They simply want the benefit and the satisfaction after consuming the product that means the time and the cost they has incurred to get the product is to meet their expectations.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Indigo Industries is considering two new machines. Machine A will generate revenues of $120,000, have variable costs of $40,000, and fixed costs of $8,000. Machine B will generate revenues of $140,000, have variable costs of $30,000, and fixed costs of $8,000.
Machine A= 120,000 - 40,000 - 8,000= 72,000
Machine B= 140,000 - 30,000 - 8,000= 102,000
Incremental revenue= B - A= 30,000
Answer:
<u>Net Loss (11,600)</u>
Explanation:
Blossom Company
Multiple-step Income Statement
For 2020
Sales revenue $272000
Less Sales Returns ( $160100- 138200) (21900)
Less Freight-out (6100 )
Net Sales 244,000
Less Cost of goods sold ($163000)
Gross Profit $ 81,000
Less Administrative expenses (39200)
Operating Income 41,800
Add other income
Interest revenue 9800
Other Expenses (63,900)
Less Bad debt expense (6100)
Less Commissions to salespersons (15200)
Loss on sale of equipment (17200)
Loss from discontinued operations (24700)
<u>Net Loss (11,600)</u>
As there is a net loss it will be exempt from income tax.
Multi step income statement gives a detailed information about the income at every stage , like the gross profit , operating profit , other income, other expenses , etc.
Answer:
A) Gross Profit = 5000 x (25.50 - 25) + 15000 x (25.25 - 25) = 6250
B) Avg Bid Price = 5000/20000 x 25.50 + 15000/20000 x 25.25 = 25.3125
Ask price = 25.0
Avg Bid-ask price = 0.3125
