Answer:
$88,000
Explanation:
The computation of the pension expense for the year is shown below:
Service Cost $100,000
Add: Interest Cost $60,000 ($750,000 × 8%)
Add: Amortization of prior service cost $6,000
Add: Amortization of net loss $2,000
Less Expected return on plan assets $80,000 ($800,000 × 10%)
Pension Expense $88,000
We simply deduct the expected return on plant assets and the other values would be added to the service cost so that the pension expense could come
Answer: d. choose the price at which it sells its butter.
Explanation:
In a competitive market, the individual sellers do not choose a price to sell at but rather the market does. This is due to the high number of sellers in the market so individual sellers do not have bargaining power.
The price will therefore equal the firm's marginal revenue as well as Average revenue.
Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
Mmhm could you pls expand a little more
