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sweet-ann [11.9K]
3 years ago
7

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 600,000

Variable expenses $ 241,000 Fixed manufacturing expenses $ 232,000 Fixed selling and administrative expenses $ 180,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $192,500 of the fixed manufacturing expenses and $107,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E
Business
1 answer:
atroni [7]3 years ago
6 0

Answer:

$127,000

Explanation:

Suire Corporation Net operating income

Sales $ 600,000

Variable Costs $ 241,000

Contribution Margin $ 359,000

Fixed Expenses $232,000

Net Operating Income $127,000

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The first two closing entries to the Income Summary account indicate a debit of $57,750 and a credit of $69,700. The third closi
zhenek [66]

Answer:

The correct answer is C

Explanation:

Closing entry is defined as the journal entry which is passed or made the end of the accounting period or year, which involves shifting of the data from the temporary accounts on the income statement to the permanent accounts on the balance sheet of the company.

The third closing entry which is to be recorded is as:

Income Summary A/c................................Dr   $11,950

        Capital A/c................................................Cr  $11,950

Being the closing entry has been recorded

Working Note:

Amount = $69,700 - $57,750

= $11,950

8 0
2 years ago
DTO, Inc., has sales of $24 million, total assets of $21.1 million, and total debt of $8.2 million. Assume the profit margin is
Scrat [10]

Answer:

a. Net income = Sales * profit margin

= $24 million * 10%/100

= $2.4 million

b.  ROA = Profit / Total Assets

= $2.4 million / $21.1 million

= 0.11374

= 11.374%

c.  ROE = Profit / (Total Assets - Debt)

= $2.4million / ($21.1million - $8.2million)

= $2.4million / $12.9 million

= 0.186

= 18.6%

4 0
3 years ago
Andy has been working at Aerial Corp. for a long time. He feels he is hard working and that he deserves a pay hike. He seeks a m
Norma-Jean [14]

Answer:

C) ​The chronological context

Explanation:

Chronological context refers to time related factors that affects affects communication. The effect could be favourable or unfavourable.

In this scenario because Andy had worked for a long time and he feels he is hard working, he feels he deserves a pay raise.

His need for a pay raise is time based. It is initiated by his length of service in the company. So this is a chronological context in which a time based factor affects communication between Andy and Anna.

4 0
3 years ago
Read 2 more answers
Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0
butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow    ............1

so here PV of cash outflow = $300000  

and Net sales = $200000

expenses = $80000

Depreciation =  \frac{300000-50000}{5}

Depreciation =  $50000

so Net income before taxes  = Net sales - Depreciation - expenses

Net income before taxes =  $200000  - $80000 - $50000

Net income before taxes =  $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

Net income = $70000  - $28000

Net income = $42000

and

Depreciation = $50000

Net cash inflow =  Net income + Depreciation

Net cash inflow =  $42000  + $50000

Net cash inflow = $92000

and

PVIFA @ 10% 5 years = $3.7908

so

PV of cash inflow = $348755

PV of salvage value = $50000 ×0.6209

PV of salvage value = $31045

and

so here  Total PV of total cash inflow = $379800

and

net present value  NPV =  Total PV of total cash inflow - PV of cash outflow

net present value NPV = $379800 - $300000

net present value NPV = $79800

so correct option is D) $79,800

7 0
3 years ago
In what three ways does the government affect production of goods and services in the US economy?
denpristay [2]
Government activity affects the economy in four ways: The government produces goods and services, including roads and national defense. Less than half of federal spending is devoted to the production of goods and services
8 0
3 years ago
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