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
GrogVix [38]
3 years ago
6

he management accountant for​ Giada's Book Store has prepared the following income statement for the most current​ year: Cookboo

k Travel Book Classics Total Sales $68,000 $126,000 $53,000 $247,000 Cost of goods sold 40,000 66,000 21,000 127,000 Contribution margin 28,000 60,000 32,000 120,000 Order and delivery processing 21,000 24,000 11,000 56,000 Rent​ (per sq. foot​ used) 2,000 5,000 4,000 11,000 Allocated corporate costs 8,000 8,000 8,000 24,000 Corporate profit ​$​ (3,000​) $23,000 $9,000 $29,000 If the cookbook product line had been discontinued prior to this​ year, the company would have reported​ ________.
Business
1 answer:
dlinn [17]3 years ago
4 0

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current​ year:

                                               Cookbook  Travel Book    Classics   Total

Sales                                        $68,000  $126,000  $53,000  $247,000

Cost of goods sold                    40,000     66,000     21,000     127,000

Contribution margin                  28,000     60,000    32,000     120,000

Order and delivery processing 21,000     24,000      11,000       56,000

Rent​ (per sq. foot​ used)              2,000       5,000      4,000         11,000

Allocated corporate costs          8,000        8,000      8,000       24,000 Corporate profit                     ​$​ (3,000​)  $23,000    $9,000     $29,000

Corporate profit =                     $29,000

less allocated cookbook costs   10,000

Adjusted corporate profit =      $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.

You might be interested in
Costs of goods sold of a manufacturing represents the costs related to building a product that are expensed when it is sold. to
Anastasy [175]

There are 3 types of Inventory as below:

1) Raw Material Inventory

2)Work in Process Inventory

3)Finished Goods Inventory

Schedule for Work in Process Inventory is as below:

Beginning Balance of Work in Process...................................................................XXX

Direct Materials

Beginning Balance of Direct Materials................................XXX

Add: Purchase of Raw Materials...........................................XXX

Total Raw Materials Available...............................................XXX

Less: Ending Balance of Raw Materials..............................(XXX)

Raw Materials Consumed.....................................................................XXX

Direct Labour...........................................................................................XXX

Manufacturing Costs

Indirect Labour....................................XXX

Factory Repairs...................................XXX

Factory Utility......................................XXX

Total Manufacturing Overhead............................................................XXX

Total Manufacturing Costs....................................................................................XXX

Total Cost of Work in Process..............................................................................XXX

Less: Ending Balance of WIP................................................................................(XXX)

Cost of Goods Manufactured................................................................................XXX

3 0
3 years ago
Upon graduating from college, you make an annual salary of $58,381. You set a goal to double it in the future. If your salary in
Fynjy0 [20]

Answer: 9.20

Explanation:

In finance there is a rule for calculating this called 'The Rule of 70'.

With The Rule of 70, you are able to calculate the amount of time it will take an investment to double if you divide 70 by the growth rate of the investment.

In this scenario, the investment is your salary and the growth rate is 7.61% pee year.

The amount of time it will take to double is therefore,

= 70 / 7.61

= 9.19842312746

= 9.20 years.

It will take 9.20 years to double.

7 0
3 years ago
Suppose the marginal cost of the 1st hour of talking on the phone is $50, the marginal cost of the 2nd hour is $75, and the marg
Nutka1998 [239]

Answer:

$230

Explanation:

Data given in the question

Marginal cost of the first hour = $50

Marginal cost of the second hour = $75

Marginal cost of the third hour = $105

So by considering the above information, the total cost is

= Marginal cost of the first hour + Marginal cost of the second hour + Marginal cost of the third hour

= $50 + $75 + $105

= $230

We simply added the marginal cost of all three hours in order to determine the total cost

5 0
3 years ago
Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the b
Arte-miy333 [17]

Answer:

NSF check is also called bounced check, NSF stands for Non-Sufficient Funds. These checks cannot be cashed because of insufficient funds in the payer's account. A client needs to pay bank fees for negotiating a check with non- Sufficient funds. All the banks charge a fee for the bounced check. In case of non sufficient funds, there is deduction from the balance as per the banks statement.

7 0
2 years ago
2. Explain the four characteristics of the price system.
goblinko [34]

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

:)

5 0
2 years ago
Other questions:
  • Which best describes the benefits of renting a home?
    12·2 answers
  • Sal and Jen went to the store together, and each bought the same car stereo. Sal used a card to make the purchase, and the full
    9·1 answer
  • On September 1, 2021, Gold Gaming sold 400 one-year subscriptions to its online gaming website for $90 each. The total amount re
    9·2 answers
  • A firm that wants to achieve economies of scale could do so by a. producing a smaller quantity of output. b. employing a smaller
    13·1 answer
  • Jonathan Mfg. adopted a job-costing system. For the current year, budgeted cost driver activity levels for direct labor hours an
    14·1 answer
  • Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou
    10·2 answers
  • When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ s
    15·1 answer
  • A small open economy with a fixed exchange rate e2 is initially at equilibrium A with LM*1 and equilibrium output Y1. If there i
    15·1 answer
  • Use the graph to answer the question that follows.
    13·1 answer
  • donna can make a chair for $100, she charges customers $150 to buy the chair, and customers perceive that the chair is worth $22
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!