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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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Andreyy89

Answer:

culturally similar

Explanation:

In this case, you might seek to put people on the project who are from a culturally similar country. These types of countries share the same cultural backgrounds and therefore individual's from these countries usually have the same beliefs, ideas, habits, etc. This similarity allows these individuals to easily bond and work together easily. Ultimately, this would be the best option for a group project since it will drastically increase efficiency if the members are able to work together more fluently.

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3 years ago
A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.02 pe
LuckyWell [14K]

Answer:

$97,000      

Explanation:

Data provided in the question:

Receivable amount = 100,000 Canadian dollar

Premium per unit = $0.02

Exercise price of put option = $0.94

Spot rate at maturity = $0.99

Now,

Dollars received from selling Canadian dollars in the spot market

= Receivables amount  × Spot rate

= $100,000 × $0.99

= $99,000

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3 0
3 years ago
Lionel Richmond is a soccer player who has a six-year contract with the Christshire United soccer team. Two years into the contr
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Answer:

D) discharge by impossibility.

Explanation:

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Answer:

The correct answer is the last option: a budget expresses a total amount, while a standard expresses a unit amount.

Explanation:

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