1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lyudmila [28]
2 years ago
8

The management of Heider Corporation is considering dropping product J14V. Data from the company's accounting system appear belo

w:
Sales: $980,000
Variable expenses: $394,000
Fixed manufacturing expenses: $376,000
Fixed selling and administrative expenses : $256,000

In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $245,000 of the fixed manufacturing expenses and $206,000 of the fixed selling and administrative expenses are avoidable if product J14V is discontinued. What would be the effect on the company's overall net operating income if product J14V were dropped?
Business
1 answer:
rjkz [21]2 years ago
6 0

Answer:

financial disadvantage of dropping product J14V = $135,000, so net operating income would decrease by that amount

Explanation:

net loss generated by product J14V = $980,000 - $394,000 - $376,000 - $256,000 = ($46,000)

unavoidable fixed costs:

Fixed manufacturing expenses = $376,000  - $245,000 = $131,000

Fixed selling and administrative expenses = $256,000 - $206,000 = $50,000

total unavoidable fixed costs = $181,000

the overall effect = total unavoidable fixed costs - net loss = $181,000 - (-$46,000) = $135,000 financial disadvantage since unavoidable costs are higher than current losses

You might be interested in
Consider the market for orange juice. Suppose two events occurred last week. During the course of this past week, the price of o
True [87]

Answer:

these two events would lead to an increase in equilibrium quantity and have an indeterminate effect on equilibrium price

Explanation:

As a result of the decrease in the price of oranges which is use in the production of orange juice, there would be a rightward shift of the supply curve for orange juice. A a result,  the supply of orange juice would increase and price of orange juice would fall

Substitute goods are goods that can be used in place of another good.

The doubling of the price of coke would lead to a decrease in the demand for coke and an increase in the demand for orange juice. This would shift the dead curve for orange juice to the right. As a result,  both equilibrium price and quantity increases

these two events would lead to an increase in equilibrium quantity and have an indeterminate effect on equilibrium price

8 0
2 years ago
Ballard Company reported assets of $500 and liabilities of $200. What amount will Ballard's report for stockholders' equity?
Westkost [7]

Answer:

$300

Explanation:

Data provided in the question

Assets reported = $500

Liabilities = $200

So, Stockholder equity is

= Total assets - total liabilities

= $500 - $200

= $300

By applying the accounting equation, that equal to

Total assets = Total liabilities + owners equity

We can find out the stockholder equity by deducting the total liabilities from the total assets

7 0
3 years ago
On January 1, 2022, the Sheridan Company ledger shows Equipment $49,700 and Accumulated Depreciation $18,280. The depreciation r
Lisa [10]

Answer:

revised annual depreciation will be : 13710

Explanation:

After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.

As per existing information the depreciation charges are calculated as :

(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570

Accumulated Depreciation indicates that 4 years have past by (18280/4570)

now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:

Remaining Cost :31420  (49700 -18280)

Salvage Value : 4000

Revised Remaining Useful Life  : 2

Revised Calculated Depreciation Annual  : (31420-4000)/2 = 13710

It can be further verified through simple math also:

Adding annual depreciation of remaining 2 years : 13710 +13710 =27420

Value available for depreciation after salvage value : 31420 -4000= 27420

3 0
3 years ago
Cirone Inc. reported the following results from last year's operations: Sales $ 9,600,000 Variable expenses 6,810,000 Contributi
weeeeeb [17]

Answer: 8.39%

Explanation:

Margin = Net Income/ Sales

Net income for the company including the new investment:

= 864,000 + (Sales * Contribution margin ratio - Fixed costs)

= 864,000 + (4,200,000 * 30% - 966,000)

= $1,158,000

The combined sales for the company is:

= 9,600,000 + 4,200,000

= $13,800,000

Combined margin:

= 1,158,000 / 13,800,000

= 8.39%

6 0
3 years ago
Identify two prices indices?
Pie

Answer:

Some notable price indices include:

Consumer price index.

Producer price index.

Employment cost index.

Export price index.

Import price index.

GDP deflator.....

7 0
3 years ago
Read 2 more answers
Other questions:
  • A main advantage of enterprise resource planning (erp) is that it describes a _____ that ensures connectivity and easy integrati
    6·1 answer
  • When people use their resources so that marginal benefits exceed marginal costs they
    11·1 answer
  • An asset has an average return of 11.57 percent and a standard deviation of 24.54 percent. What is the most you should expect to
    5·1 answer
  • In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of t
    8·1 answer
  • Suppose that the expected value of weekly profits for an ice cream​ shop, before paying the​ manager, Amy, is ​E(pi​)equals500pl
    15·1 answer
  • If productivity increases significantly and demand is not very elastic, what is likely to happen?
    10·2 answers
  • Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Nike and adidas
    12·1 answer
  • The next dividend payment by Hoffman, Inc., will be $3.10 per share. The dividends are anticipated to maintain a growth rate of
    15·1 answer
  • 6. Why is it important to consider the structure of your resume and what
    10·1 answer
  • Which of the following are advantages of accrual basis
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!