All categories

3 years ago

North Division has the following information:

Business

1 answer:

VLD [36.1K]3 years ago

5 0

Answer:

due to elimination

income will decrease by $526000

Explanation:

Given data

Sales = $1180000

Variable expenses = $654000

Fixed expenses = $620000

to find out

incremental effect on net income

solution

we know here total sale is $1180000 and Variable expenses is $654000

so contribution if the division is dropped is sales - Variable expenses

put these value

contribution = 1180000 - 654000

contribution = 526000

so we say that due to elimination

income will decrease by $526000

You might be interested in

At carbon fine inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. a compensati

eduard

Compa-ratio, short for comparitive ratio, is a formula used to determine competitiveness of an employees pay. A compa-ratio of 1.00 would mean the employee is making exactly the market average.
With a ratio of 1.9, this means the designers are making twice the industry average for their job. The biggest problem this could cause would be labor costs being to much. If the company is paying 2x the market rate for their designers, they aren't staying competitive.

4 0

3 years ago

Discuss the difference between fixed expenses and variable expenses as they relate to a budget.

SSSSS [86.1K]

Fixed expenses are expenses that stay the same for a person or a business. An example of a fixed expense is rent/mortgage. This expense doesn't change if you are only usig the building for 2 weeks or the entire month, its a set rate. A variable expense is an expense that changes like an electric bill, it varies based on the month and usage. When you budget, you can easily budget for your fixed expenses but you need to allow some room in your budget for expenses that change.

6 0

3 years ago

Read 2 more answers

What is the difference between gross pay and net pay?

fiasKO [112]

I think it is B please put me brainless answer if I got it right

6 0

2 years ago

Candy crunchers wants to see if their new candy is enjoyed more by high school or middle school students. they decide to visit o

lukranit [14]

The answer would be: all students who attend one middle school and one high school in Miami, FL. As the company, Candy Crunchers, only took surveys from one high school and one middle school only, that would be the sample of the population.

7 0

3 years ago

Read 2 more answers

Easy Car Corp. is a grocery store located in the Southwest. It expects to pay an annual dividend of $6.30 next year to its share

emmainna [20.7K]

Answer:

Missing question <em>"1. What is the cost of debt for Easy Corp? 2. How many interest payments are left for the bond of Easy Corp? 3. What is the interest payment per period for the bond? 4. What is the discount rate per period to use in pricing the bonds? 5. What is the market value of equity for Easy? 6. What is the cost of equity for Easy?"</em>

<em />

1. Cost of debt is equal to YTM, which is equal to 10%

Cost of debt = YTM = 10%

2. Number of interest payment to be made is equal to 26 * 2 = 52

This is because payment is made semi annually

3. Interest payment per period = 8.9141% / 2 * $1,000

Interest payment per period = 4.45705% * $1,000

Interest payment per period = $44.57

4. As the period is semiannual, discount rate per period is equal to 10% / 2 = 5%

5. Market value of equity = 600,000*60 = $36,000,000

6. Cost of equity = Dividend price + Growth rate

Cost of equity = 6.3/60 + 0.05

Cost of equity = 0.105 + 0.05

Cost of equity = 0.155

Cost of equity = 15.5%

7 0

3 years ago