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zhuklara [117]
3 years ago
6

Bailey Corporation manufactures and sells a number of products, including Product G. Results for last year for the manufacture a

nd sale of Product G are as follows: Sales $750,000 Less expenses: Variable production costs $450,000 Sales commissions 110,000 Salary of product manager 95,000 Fixed product advertising 80,000 Fixed manufacturing overhead 70,000 805,000 Net operating loss ($55,000) Assume that dropping Product G would result in a $40,000 increase in the contribution margin of other product lines. If Bailey chooses to drop Product G, then the change in net operating income next year due to this action will be a: Bailey is trying to decide whether or not to discontinue the manufacture and sale of Product G. All expenses other than fixed manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. by Dropping G and increasing the contribution margin of other products will cause an increase of $25,000
Business
1 answer:
snow_lady [41]3 years ago
8 0

Answer:

Effect on income= $25,000 increase

Explanation:

Giving the following information:

Sales $750,000

Variable production costs $450,000

Sales commissions 110,000

Salary of product manager 95,000

Fixed product advertising 80,000

Fixed manufacturing overhead 70,000

Net operating loss ($55,000)

Assume that dropping Product G would result in a $40,000 increase in the contribution margin of other product lines.

We need to calculate the effect of dropping Product G.

Effect on income= - Net operating loss + increase in contribution margin - fixed overhead costs

Effect on income= 55,000 + 40,000 - 70,000= 25,000 increase

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I think for this would most likely have to be C

Explanation:

I'd have to say that since if you were to keep calling people out for it it sorta defeats the purpose? something like that-

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3 years ago
Which of the following statements best represents the reason for the accounting equation?
NikAS [45]

Answer:

c. The total of everything owned by a business must always equal the total of what the business owes to creditors and owners.

Explanation:

In every balance sheet, the accounting equation has used that means

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The total assets comprises of current assets, fixed assets and the intangible assets

The current assets includes cash, stock, account receivable, etc

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And, the total liabilities include current liabilities and the long term liabilities

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3 years ago
Which of the following is NOT an example of fixed expenses?
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2 years ago
"What is Al’s total revenue? 3 pts) B. What are Al’s explicit costs? In numbers (3 pts) C. What is his accounting profit? In Num
erik [133]

Answer:

A. $1,020,000

B.$680,000

C.$340,000

D.$95,000

E.$245,000

Explanation:

A. Calculation for Jon’s total revenues

Using this formula

Jon's total revenue = Amount of fees per person × Number of persons

Let plug in the formula

Jon's total revenue = $1,200 × 850

Jon's total revenue=$1,020,000

B. Calculation for Jon’s explicit costs

Using this formula

Explicit costs = Amount of money that goes for instructors, maintenance, equipment,insurance, depreciation ×Number of persons

Let plug in the formula

Explicit costs= $800 ×850

Explicit costs =$680,000

C. Calculation for the his accounting profit

Using this formula

Accounting profit = Amount of Revenue - Explicit costs

Let plug in the formula

Accounting profit= $1,020,000 - $680,000 Accounting profit=$340,000

D. Calculation to List 2 in numbers 2 implicit costs that Jon has not included

Based on the information given we were told that he is foregoing an amount of $92,000 as wage and 1.5% interest on his amount of $200,000 which is a corporate bonds to start the business.

Hence

Jon total opportunity costs = $92,000 + (1.5%×$200,000)

Jon total opportunity costs = $92,000 +$3,000 Jon total opportunity costs=$95,000.

E. Calculation for Jon’s pure economic profit (or loss) in numbers

Using this formula

Economic profit = Accounting profit - opportunity costs

Let plug in the formula

Economic profit = $340,000-$95,000

Economic profit = $245,000

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3 years ago
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Saudi Arabia has the most
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