The business decision increase the operating income by $16,000
Calculation of impact of net operating income:
The following formula should be used:
= Contribution margin lost + fixed cost savings
= -$58,000 + $74,000
= $16,000
Since fruit product contributed $58,000 so here we eliminated it due to this it has a loss of $58,000 for the orange company
Therefore we can conclude that that the business decision increase the operating income by $16,000
Learn more about the: operating income here: brainly.com/question/13872434
Answer:
B) We can say that the firm is maximizing profit in the short run
Explanation:
A rational producer is at profit maximising equilibrium where : Marginal Revenue = Marginal Cost.
When MR > MC, profit is increasing & it is beneficial for firm to expand output. When MR < MC, it is loss making & it is beneficial for firm to decrease output.
If at 500 units of output : MR = MC, firm is maximising profit in short run.
Answer:
4,000 units
Explanation:
The formula to compute the break even point is shown below:
= (Fixed costs ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
And, the fixed cost is $100,000
Now put these values to the above formula
So, the value would be equal to
So, the break even point would be
= ($100,000) ÷ ($45 - $20)
= $100,000 ÷ $25
= 4,000 units
Answer:
Answer in explanation.
Explanation:
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Answer: unaffected
Explanation:
We should note that a retrospective adjustment isn't necessarily needed when there's an alternation to a accounting estimate.
With regards to this Barney's retained earnings as of December 31, 2021, would neither be understated or overstated but would be unaffected.