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
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

You might be interested in
The Berne Conventions provides for international protection of copyrights.<br><br> True<br> False
kolezko [41]
False thank me later guys :)
8 0
2 years ago
Hyu Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of th
Free_Kalibri [48]

Answer:

The predetermined overhead rate for the recently completed year was $25.33

Explanation:

The formula to compute the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead = Estimated total fixed manufacturing overhead + estimated variable manufacturing overhead rate × estimated labor hours

= $1,230,440 + $3.12 × 55,400 hours

= $1,230,440 + $172,848

= $1,403,288

Now put these values to the above formula  

So, the rate would equal to

= $1,403,288 ÷ 55,400 hours

= $25.33

8 0
3 years ago
"Using the given information, determine the cost of one no rechargeable alkaline battery; and compare with the cost of one recha
sergij07 [2.7K]

Answer:

Over the life of the battery, the battery that is most cost-effective is:

The AA alkaline non rechargeable battery.

Explanation:

a) Data and Calculations:

Number of times that NiCad batteries can be recharged (reused) = 100 times

Cost of a 4 pack of AA NiCad rechargeable batteries = $10.80

Recharging cost = $1 ($0.01 * 100)

Total cost of AA NiCad rechargeable batteries = $11.80

Cost per use = $0.12 ($11.80/100)

Cost of a 4 pack of AA alkaline non rechargeable batteries = $3.69

Cost per use of AA alkaline non rechargeable batteries = $0.04 ($3.69/100)

b) The comparison and the resulting conclusions are based on the assumption that the non rechargeable and the rechargeable batteries enjoy equal useful life.  Therefore, the AA alkaline non rechargeable batteries are also used 100 times.

7 0
3 years ago
Glebe Company accepted a credit card account receivable in exchange for $1,100 of services provided to a customer. The credit ca
zimovet [89]

Answer:

Account receivable balance = $1,100 - ($1,100* 5%)

Account receivable balance =$1,100 - $55

Account receivable balance = $1,045

Date    Account Title        Debit       Credit

           Cash Account      $1,045

                 To Accounts receivable  $1,045

7 0
3 years ago
Marin Company's accounts receivable arising from sales to customers amounted to $88000 and $77000 at the beginning and end of th
anzhelika [568]

Answer:

Marin Company

Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

$345,000

Explanation:

a) Data and Calculations:

Accounts Receivable (Beginning) $88,000

Accounts Receivable (Ending) $77,000

Increase in Cash received from customers = $11,000

b) Income reported on the income statement for the year = $334,000

Increase in Cash received from Customers =                               11,000

Cash flows from operating activities to be reported =           $345,000

c) The Accounts Receivable reduced from $88,000 to $77,000.  This implied that some customers settled their accounts.  Therefore, there was inflow of cash from customers.  This increases the cash flows from operating activities.  This is why the difference is added to the Income as per income statement as a change in working capital.

5 0
3 years ago
Other questions:
  • Scenario 10 Suppose that in Country A, one worker per day can produce either 120 units of food or 50 units of capital goods; whi
    6·1 answer
  • The NIPP Call to Action is meant to guide the collaborative efforts of the critical infrastructure community to advance security
    5·2 answers
  • Oriole Company has the following budgeted sales: January $210000, February $260000, and March $220000. 40% of the sales are for
    7·1 answer
  • Which of the following is not normally considered an area of personal finance?
    10·1 answer
  • Using what you have learned in your focus group, you begin your analysis of the buyer decision process. In the first stage of th
    13·1 answer
  • What price will be paid for a u.s. treasury bond with an ask price of 135:20?
    13·1 answer
  • Present and future value tables of $1 at 3% are presented below
    5·1 answer
  • How can a business support the community​
    6·2 answers
  • What are two factors used to determine a credit score? Explain how they indicate good or poor credit. Write in complete
    12·1 answer
  • USAco exports videos containing Brewer baseball highlights from the Lopes-Royster era (each video lasts only 30 seconds) on whic
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!