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eimsori [14]
3 years ago
12

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann

ual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
Business
1 answer:
Svetradugi [14.3K]3 years ago
3 0

Answer:

-$10,000

Explanation:

For computing the annual financial advantage or disadvantage, we have to determine the net income or loss  in both cases which are shown below:

In the first case

Net income or loss = Annual contribution margin - annual fixed cost

                   = $80,000 - $160,000

                   = $80,000

And, the net income with fixed cost is $90,000

So, the financial disadvantage would be

= $80,000 - 90,000

= -$10,000

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These are issued by corporations for coping with its short term obligations.

These are guaranteed by the issuing company.

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Should students have more P.E time?
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Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out
stepladder [879]

Answer:

The amount of dividend received by common stockholders in 2017 = $7500

Explanation:

The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.

The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500

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Out of this 22500, 12500 relates to prefernece dividend for 2015.

The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.

In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.

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7 0
3 years ago
Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost Variable Cost Per Unit A) I
maxonik [38]

Answer:

Total Variable Cost, Variable Cost Per Unit

Explanation:

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2 years ago
Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes
larisa [96]

Answer:

D) She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.

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She is also some one that spends more time than she should socializing with friends in other departments.

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