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Musya8 [376]
3 years ago
15

Product U23N has been considered a drag on profits at Jinkerson Corporation for some time and management is considering disconti

nuing the product altogether. Data from the company’s budget for the upcoming year appear below: Sales $ 730,000 Variable expenses $ 350,000 Fixed manufacturing expenses $ 234,000 Fixed selling and administrative expenses $ 161,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $144,000 of the fixed manufacturing expenses and $93,000 of the fixed selling and administrative expenses are avoidable if product U23N is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:
a. $15,000
b. $143,000
c. $(143,000)
d. $(15,000)
Business
1 answer:
kipiarov [429]3 years ago
5 0

Answer:

c. $(143,000)

Explanation:

The Jinkerson Corporation is considering to discontinue the product U23N. The advantage or disadvantage Jinkerson Corporation will get after the discontinuation of product U23N will be ;

Saving in Fixed manufacturing expense = $144,000

The new fixed manufacturing expense = $234,000 - $144,000 = $90,000

The new fixed selling and administrative expense = $161,000 - $93,000 = 68,000.

The company overall net income will decrease by $143,000.

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Answer:

have developed through to the performing stage

7 0
3 years ago
Del is buying a $250,000 home. He has been approved for a 5.75% mortgage. He was required to make a 15% down payment and will be
alukav5142 [94]

Answer:

Del is expected to prepaid to pay $535.62 in prepaid interest at the closing.

Explanation:

The down payment of 15% is $250000*15%=$37500

The balance of mortgage net of down payment=$250000-$37500

                                                                               =$212500

Interest yearly=$212500*5.75%=$12,218.75

A year interest divided by 365days give one day interest.

A day interest=$12218.75/365=$33.48

Total interest  to pay at closing=16days*$33.48

                                                     =$535.62

The number of days was 16 because July has 31days and deal was closed on 15th,hence 31 minus 15 gives 16.

4 0
4 years ago
From her sales income, barbara has subtracted cost of goods sold, operating expenses, interest expense, and taxes. what she has
Murrr4er [49]
The answer is net income
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6 0
4 years ago
Benefits of delocalisation of firms​
inna [77]

Answer

It encourages the establishment of support business enterprises

Explanation:

This promotes national attachment and solidarity; and furthermore diminishes provincial urban relocation. Market for crude materials: localization makes showcase for privately delivered crude materials in this way making work and winning makers pay.  

When numerous organizations are situated in one locale, foundations, for example, banks, insurance agencies, and merchants are probably going to set up organizations in the region to offer administrations required  

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6 0
4 years ago
Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory. The Company purchased an add
a_sh-v [17]

Answer:

$29,500

Explanation:

Given that,

Beginning inventory = $12,000

Ending inventory = $6,000

Purchases = $25,000

Purchase return = $1,500

Kuyu’s cost of goods sold during the period:

= Beginning inventory + Net purchases - Ending inventory

= Beginning inventory + (Purchases - Purchase return) - Ending inventory

= $12,000 + ($25,000 - $1,500) - $6,000

= $12,000 + 23,500 - $6,000

= $29,500

5 0
3 years ago
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