Answer:
Company's net income will increase by $2500 if the product line is discontinued.
Explanation:
From the data given:
Sales 25000
variable cost (less) 19000
contribution margin 6000
Fixed costs
directed fixed costs 7000
allocated fixed costs 5000
net income -6000
Fixed cost savings 7000
rental revenue 1500
total savings if discontinued 8500
contribution margin (less) 6000
net income increased by 2500
<span>This position on grace
sees the convicting and enabling work of the Holy Spirit accompanying the
preaching of the gospel and believes this work is accomplished in every
believer with the Sprit of Jesus Christ. The Sovereign Grace Churches has the
main mission to spread the Gospel of Jesus. </span>
Answer:
The correct answer is Sole Proprietorship.
Explanation:
A sole proprietor is the simplest form of commercial structure. Anyone can be a sole proprietor and there is no legal basis for this business form. The term sole proprietor simply refers to someone who is engaged in some type of business and who is responsible for the debts of that business. You can run a sole proprietor under your own name, or under a "do business as" (DBA) name, such as Manny's Sandwiches. The DBA name is just a business name and does not create a legal entity separate from the sole owner.
A sole proprietor remains a very popular commercial form because it is simple, easy to create and has minimal costs. All that is needed is to register your name and your DBA is applicable, and pay local licenses if necessary. Once this is done, you will be ready for business. The disadvantage of a sole proprietor is that the sole proprietor is responsible for all commercial debts, and there is no legal shield against lawsuits. If a sole proprietor loses a lawsuit, he or she is responsible for paying the sentence with their own money, which could put the savings or even your home at risk.
