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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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When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of
DaniilM [7]

Answer:

The firm will continue to produce in the short run.

Explanation:

Given the number of units produced by Acme Dynamite = 250 units.

The variable cost of producing the 250 units = $2000

The fixed cost = $500

The selling price = $25 per unit.

The new price after the fall in price = $10

Total revenue from the selling of 250 units = 250 × 10 = $2500

Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.

7 0
3 years ago
Crops can be traded on the futures market before they are harvested. If a poor corn harvest is predicted, prices of corn futures
r-ruslan [8.4K]

Answer: From the comprehension , we can state the following two arguments:

<u><em>(a.) If a poor corn harvest is predicted, prices of corn futures rise.</em></u>

<u><em>(b.) If a bountiful corn harvest is predicted, prices of corn futures fall.</em></u>

Also, it has been predicted that much-needed rain for the corn-growing region will start tomorrow.

Now, if the following is true, then it weakens the above argument:<em><u> Agriculture experts announced today that a disease that has devastated some of the corn crop will spread widely before the end of the growing season.</u></em>

Since, it has already been predicted that it'll rain in requirements with the growth of the crop but if the crops are destroyed before the growing season , then there will be a decrease in cultivation and thus the prices will rise.

<u><em>Therefore, the correct option is (D)</em></u>

8 0
4 years ago
Summarize the different levels of organization involvement in international trade
insens350 [35]

Answer:

Here are several organization involvements that exist in international trades but might not exist in domestic trade:

- Import/export

- Countertrade Agreement

- Foreign Direct investment

- Multinational marketing strategy

Explanation:

- Import/export

To put it simply, Import is the act of acquiring goods from another country to your country. Export is the act of sending goods from your country to another country,

- Countertrade Agreement

This consist of tradge agreements that created by the government between different countries.

Most countries will impose tariff or quota to the foreign goods that come into their country. This will increase the price of the foreign goods when they entered the local markets. Tariff and quota are made to protect local businesses from foreign businesses.

- Global outsourcing

This happens when a company give their job to the people from another country.

Most commonly, this is conducted by companies from a richer countries. Outsourcing their jobs to a poorer country tend to cut down the labor cost. They can send  the product output back to their original country and sell it with higher price/.

- Multinational marketing strategy

This marketing strategy considers the different cultures / taste that exist in foreign market. They will cater their strategy to suit the taste of foreign customers and improve their brand favorability.

7 0
4 years ago
Donna wants to buy a new coat. During the ________ stage of the buyer decision process she will ask her friends to recommend sto
koban [17]

During the <u>information search</u> stage of the buyer decision process she will ask her friends to recommend stores that sell good quality winter wear clothing.

<u>Explanation</u>:

As a buyer, we always look into lot of recommendations and options to buy a product.

Information search is the major phenomena while buying a product. Information search helps in making decision for a consumer or purchaser.

Information search can be classified into two types:

i) Internal research

ii) External research

Newspapers, magazines and even word of mouth help in providing information during decision making process. This information search before buying a product helps the consumer to make good decision and gain profit over their purchase.

4 0
4 years ago
Another bank is also offering favorable terms, so Rahul decides to take a loan of $22,000 from this bank. He signs the loan cont
Stels [109]

Answer:

total amount that owes the bank at the end of the loan is $22897.74

Explanation:

given data

loan = $22,000

Annual rate = 8% = \frac{8}{365} = 0.021192 %

time = 6 month = 183 days

solution

we get here Amount at the end of loan tenure

Amount at the end of loan tenure = Amount borrowed × FVf at 0.02192%

Amount at the end of loan tenure = $22,000  × 1.040886

Amount at the end of loan tenure = $22897.74  

so total amount that owes the bank at the end of the loan is $22897.74

7 0
4 years ago
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