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Murljashka [212]
3 years ago
13

The internal financial statements of Vera Incorporated show that their beaded purses incurred an operating loss in the most rece

nt year. There were 27 comma 000 purses sold in that year. Selected financial information about the purse line follows. Total sales revenue $ 191 comma 000 Variable costs $ 92 comma 000 Contribution margin $ 99 comma 000 Fixed costs $ 101 comma 000 Net operating loss $( 2 comma 000 ) If the line of purses were to be​ discontinued, the company would avoid $ 21 comma 000 in fixed costs per year. If Vera Incorporated were to discontinue the line of​ purses, the change in annual operating income would be
Business
1 answer:
brilliants [131]3 years ago
4 0

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).

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When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________
Andreas93 [3]

Answer:

a. charges a different price to different customers that is not reflective of the firm's costs.

Explanation:

The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.

This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.

3 0
2 years ago
Georgia, a widow, has take-home pay of $600 a week from her part-time job. Her disability insurance coverage replaces 70 percent
MariettaO [177]

Answer:

Disability benefit = $5,040

Explanation:

Given:

Pay off per week = $600

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Waiting period = 4 week

Computation of disability benefits:

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4 0
3 years ago
What type of witness is allowed to give opinions during testimony?
klio [65]
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8 0
3 years ago
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A comparable property has a feature that is superior to the subject property. what adjustment would need to be made if you are u
Marysya12 [62]
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Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. T
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$ 10,867 F

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3 years ago
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