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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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Inc. reported the following information about the production and sale of its only product during the first month of​ operations:
Effectus [21]

Answer:

Cost of Goods Sold = $ 400,000

Explanation:

Units Sold = $360,000/ $225= 1600

Sales ​                                                                  $360,000

Direct materials ​$176,000

Direct labor ​$100,000

Variable factory overhead ​$44,000

Fixed factory overhead ​$80,000

Total Manufacturing Costs   $ 400,000

Variable selling and administrative expenses ​$20,000

Fixed selling and administrative expenses ​$10,000

Cost of Goods Sold = $ 400,000

As ending Inventory Finished Goods is 400 units it is not included in the Cost of Goods Sold.

3 0
3 years ago
Which of the following types of pronouncements are intended to establish the objectives and concepts that the FASB will use in d
mezya [45]

Answer:

The correct answer is option A) Statement of Concepts

Explanation:

The Financial Accounting and Standard Board (FASB) pronouncements intended to establish the objectives and concepts that the FASB will use in developing standards of financial accounting and reporting is Statement of Concepts.

Statement of Concepts is intended to serve the general interest of the public by setting the objectives, characteristics, specific qualities, and other parameters that guide selection of economic concepts that will be recognized and reflected in financial statements for financial reporting.

Statement of concepts guide the FASB in developing well researched and informed accounting principles that reflects the contents and inherent limitations that will be used in developing standards of financial accounting and reporting.

7 0
3 years ago
Ramos Inc. has total assets of $1,000 and total liabilities of $450 on December 31, 20Y6. Assume that assets increased by $130 a
sukhopar [10]

Answer:

The owner's equity be as of December 31, 20Y7 is $705

Explanation:

In this question, we apply the accounting equation which is given below

Total assets = Total liabilities + shareholder's equity

The question has said that the liabilities are decreased and the assets are increased.

So, the new asset is = total assets + increased amount

                                 = $1,000 + $130

                                 = $1,130

And, So, the new liability is = total liabilities - decreased amount

                                 = $450 - $25

                                 = $425

So, the shareholder equity would be equal to

= $1,130 - $425

= $705

Hence, the owner's equity be as of December 31, 20Y7 is $705

5 0
3 years ago
Clint Hill, CEO of Oregano Systems, a software engineering company, holds internal contests on the company intranet to get his e
kodGreya [7K]

Answer:

C) Bottom-up approach

Explanation:

The bottom-up approach refers to a management style where employee feedback is very valuable. Employees are generally invited to participate in the decision making or goal setting processes. The communication flows from the bottom of the organization to upper management levels.

In this case Hill, organizes an internal contest in order to get new business ideas.

8 0
3 years ago
On January 1, 1990, Emilio deposited $1650 into a savings account paying
Triss [41]

The time required to get a total amount of $3,300.00 with compounded interest on a principal of $1,650.00 at an interest rate of 6.2% per year and compounded 12 times per year is 11.209 years. hence the answer is

A. 2001

<h3>Compound Interest Calculation</h3>

(about 11 years 3 months)

First, convert R as a percent to r as a decimal

r = R/100

r = 6.2/100

r = 0.062 per year,

Then, solve the equation for t

t = ln(A/P) / n[ln(1 + r/n)]

t = ln(3,300.00/1,650.00) / ( 12 × [ln(1 + 0.062/12)] )

t = ln(3,300.00/1,650.00) / ( 12 × [ln(1 + 0.0051666666666667)] )

t = 11.209 years

Learn more about Compound Interest here:

brainly.com/question/24924853

#SPJ1

5 0
2 years ago
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