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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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Answer:

The correct option is D) Looking across complementary offerings

Explanation:

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Generally, the Blue Ocean Strategy (BOS) seeks to avoid locking horns with the competition by identifying niche areas that are critical to the attainment of a competition-free space. According to the BOS took kit, there are 6 paths to achieving a blue ocean strategy.

One of them is called looking across complementary offerings.

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The principle offered here stated that the higher the perception of one's brand, the more one should be able to charge for their services.

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7 0
3 years ago
A refinery blends three petroleum components into three grades of gasoline -regular, premium, and diesel. The maximum quantities
erica [24]

Answer:

Explanation:

1)

<h3> </h3>

xij = barrels of component i used in grade j per day for i = A, B, C and j = R, P, D

2)

Max Z = 18 (x AR + x BR + x CR) + 25 (x AP + x BP + x CP) + 15 (x AD + x BD + x CD) – 9 (x AR + x AP + x AD) – 7 (x BR + x BP + x BD) – 10 (x CR + x CP + x CD)

or,

Max Z = 9 x AR + 11 x BR + 8 x CR + 16 x AP + 18 x BP + 15 x CP + 6 x AD + 8 x BD + 5 x CD

3)

Subject to,

x AR + x AP + x AD <= 6000

x BR + x BP + x BD <= 3000

x CR + x CP + x CD <= 4500

x Aj + x Bj + x Cj >= 5000 for j = R, P, D

x AR >= 30%*(x AR + x BR + x CR) or, 0.7 x AR - 0.3 x BR - 0.3 x CR >= 0

x BR <= 30%*(x AR + x BR + x CR) or, -0.3 x AR + 0.7 x BR - 0.3 x CR <= 0

x CR >= 30%*(x AR + x BR + x CR) or, -0.3 x AR - 0.3 x BR + 0.7 x CR >= 0

x CP >= 60%*(x AP + x BP + x CP) or, -0.6 x AP - 0.6 x BP + 0.4 x CP >= 0

x BD <= 50%*(x AD + x BD + x CD) or, -0.5 x AD + 0.5 x BD - 0.5 x CD <= 0

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6 0
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katrin2010 [14]
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3 0
3 years ago
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The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,
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Answer:

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using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

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The right answer for the question that is being asked and shown above is that: "Production process " Any process that comes ito physical contact with the product that will be delivered to an external customer is <span>Production process </span>
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