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zheka24 [161]
3 years ago
10

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

$5,000. The division sales for the year were $1,052,000 and the variable costs were $862,000. The fixed costs of the division were $195,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Business
1 answer:
makvit [3.9K]3 years ago
5 0

Answer:

$133,000 decrease

Explanation:

The computation of the impact on the operating income is shown below:

Sales for the year    $1,052,000

Less:

Variable cost -$862,000

Contribution margin $190,000

Less:

Fixed cost for 30% of $190,000   -$57,000

Impact on the operating income $133,000

This amount reflects the decrease in the operating income

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The __________ rate tells you how much one unit of currency is worth when converted to another currency.
marissa [1.9K]

Answer:

the answer is A. exchange

hope this helps

5 0
3 years ago
Jones Corp. reported current assets of $191,000 and current liabilities of $136,000 on its most recent balance sheet. The curren
stiks02 [169]

Answer:

acid-test ratio 1,4044

Explanation:

We are asked for a variation ofthe current ratio

whie current ratio is determinate like:

\frac{current\: assets }{current\: liab}

the acid-test will remove inventory from the current assets, leaving only cash, marketable securities and accounts receivables considered for the calculations:

191,000 current assets - 85,000 inventory = 106,000

136,000 current liabilities

191,600 / 136,000  = 1,4044

7 0
3 years ago
A two-step binomial tree is used to value an option on the Australian dollar (AUD). The strike price is 1.00 USD per AUD and the
ser-zykov [4K]

Answer:

a.) The proportional up movement , u, for the currency can be calculated using the following formula:

u = eStd Dev * Square root of t

u = e0.06*square root of 0.25

u = 1.0305

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where   a = ert where r = 0.025, t = 0.25

a = e0.025*0.25 = 1.0063

d = 1 / u = 1 / 1.3050 = 0.7663

p = (1.0063-0.7663) / (1.3050-0.7663)

p = 0.46

1-p = 1-0.46 = 0.54

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3 0
3 years ago
You discover a salesman is receiving kickbacks from your largest customer, analog concerns. the information comes in an anonymou
enot [183]

I shall replace the salesman after discovering that a salesman is receiving kickbacks from my largest customer, analog concerns.

Answer: Option A

<u>Explanation:</u>

In the above mentioned scenario, the salesman is given a kickbacks - "advantages" for either the good relationship that they have maintained with the client or for luring them to always provide them the product/service with discounts.

So in this situation I would obviously replace the salesman because such situations cannot be ignored and there is no assurance that the salesman will not take kickbacks henceforth. And asking for a cut is ethically wrong as the salesman getting the kickbacks.

8 0
3 years ago
Which of the following is not an essential part of the accounting records?
Molodets [167]

Answer:

D. The worksheet

Explanation:

Accounting records are documents used to analyze and prepare financial statements. Accounting records are also documents which can be used to assess the performance of a company and also serves as source of records for audit purposes.

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7 0
2 years ago
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