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Art [367]
3 years ago
14

The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be

low: Sales $923,000 Variable expenses $405,500 Fixed manufacturing expenses $337,000 Fixed selling and administrative expenses $244,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $207,500 of the fixed manufacturing expenses and $118,500 of the fixed selling and administrative expenses are avoidable if product V41B is discontinued. What would be the effect on the company's overall net operating income if product V41B were dropped
Business
1 answer:
Makovka662 [10]3 years ago
5 0

Answer:

$191,500

Explanation:

If the item is not dropped:

Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses

       = $923,000 - $405,500 - $337,000 - $244,000

       = (63,500) loss

Fixed mfg. expenses remaining:

= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses

= $337,000 - $207,500

= $129,500

Fixed selling and administrative expenses remaining:

= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses

= $244,000 - $118,500

= $125,500

Loss in expenses remaining if item is dropped :

= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining

= $129,500 + $125,500

= ($255,000)

Overall net operating income would decrease by:

= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped

= $255,000 - $63,500

= $191,500

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Answer: Accountability

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Hachiro still needs to work on his accountability to be able to put into consideration the effect of the activities of his company on the society. Accountability involves being able to take record of one's action and also being to take responsibility for actions.

8 0
3 years ago
Assume Metro Corporation had a net income of $ 2,200 for the year ending December 2018. Its beginning and ending total assets we
Aleksandr-060686 [28]

Answer:

The return on assets is 8.4%

Explanation:

In order to calculate the return on assets we will first need to find the average total assets. We will do this by adding the beginning and ending total assets and dividing it by 2.

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Now in order to find the return on assets we will divide the net income by the average total assets.

Return on assets = 2,200/26,000=0.084=8.4%

7 0
3 years ago
Cash flow to stockholders must be positive when: both the cash flow to assets and the cash flow to creditors are positive. the n
aniked [119]

Answer:

The dividends paid exceeded the net new equity raised.

Explanation:

5 0
3 years ago
A NASDAQ security is bid at $30.25 and offered at $30.75. An over-the-counter trader effects a trade at $30.75 and charges a com
Angelina_Jolie [31]

Answer:

$30.75

Explanation:

Given that

Security bidding = $30.25

Offered price = $30.75

over the counter trading = $30.75

Commission charged = $0.50

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3 years ago
Which of the following cannot be a type of reward for encouraging innovation in your organization Select one: O a. Putting a pos
allochka39001 [22]

Considering the available options, the option that cannot be a type of reward for encouraging innovation in your organization is "<u>None of the above."</u>

This is because the rewards for encouraging innovation can be both tangible and intangible.

<h3>Examples of rewards for encouraging innovation are:</h3>
  • Putting a poster mentioning achievement along with photograph on main notice.
  • Giving a Cash prize.
  • Giving a promotion to some different department or location, etc.

Hence, in this case, it is concluded that the correct answer is option D. "<u>None of the above."</u>

Learn more about Rewards here: brainly.com/question/25646413

7 0
2 years ago
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