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anygoal [31]
3 years ago
8

Product J is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the pa

st year indicated a net profit for Product J of $2,750. This net profit resulted from sales of $275,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product J is retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product J is discontinued. Prepare a differential analysis report dated February 8 of the current year. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.
Business
1 answer:
allochka39001 [22]3 years ago
8 0

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Variable Cost = Cost of Goods Sold × (100 - Estimate Percentage of Cost of Good Sold) + Operating Expenses × ( 100 - Operating Expenses Fixed Percentage)  

= 186,500 × (100 - 30%) + 85,750 × (100 - 40%)

= 186,500 × 70÷100 + 85,750 × 60÷100

= $130,550 + $51,450

= $182,000

Fixed Cost= Cost of Goods Sold × Estimate Percentage of Cost of Good Sold + Operating Expenses × Operating Expenses Fixed Percentage

= $186,500 × 30÷100 + $85,750 × 40÷100

= $55,950 + $34,300

= $90,250

Differential analysis

Particular  Product J continue   Product J discontinue  Difference on income

Sales             275,000                       0                      -275,000

Variable cost     182,000                       0                  182,000

Fixed cost    90,250                            90,250                        0

Income (Sales-Variable Cost-Fixed Cost) 2,750 -90,250 -93,000

According to the analysis, project J should not be discontinue because if project j discontinue variable cost doesn’t occur, but fixed costs still occur.

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Vincent operates a scenic tour business in Boston. He has one bus which can fit 50 people per tour and each tour lasts 2 hours.
mixas84 [53]

Answer:

There is some information missing, and when I looked for it I found similar questions but the demand was already given and the question was about Vincent's total daily income.

Passenger                  Price                  Daily demand

Adults                          $18                        70

Children                      $10                        25

Senior citizens            $12                        55

total                                                           150

total revenue per day = ($18 x 70) + ($10 x 25) + ($12 x 55) = $1,260 + $250 + $660 = $2,170

total operating costs per day = (150 / 50) x $450 = $1,350

operating income per day = $2,170 - $1,350 = $820

6 0
2 years ago
Data generalizability is the: A) degree to which the data is an accurate portrait of the target population. B) degree to which a
il63 [147K]

Answer:

The answer is: A) degree to which the data is an accurate portrait of the target population.

Explanation:

To explain data generalizability I like to use election polls as an example. There are over 200 million voters in the US, and polls only cover a few thousands of voters, it is impossible to survey the whole population. Data generalizability refers to how well does the election polls reflect the real outcome of an election. Can the data sample used in the polls serve as a true parameter to know the real outcome of the election? Some polls are accurate and others aren't, accurate polls have high data generalizability.

8 0
3 years ago
Managers today need to look past traditional viewpoints in determining the success of their company's strategy. One such approac
bogdanovich [222]

Answer:

The Balanced Scorecard

Customer satisfaction:

Perspective: Customer: This perspective concentrates on things like customer service.

Goal:  Service: This would be the level of customer service.

Measure:  How do our customers see us? Survey: This would be the results of an online customer satisfaction survey.

Internal processes:

Perspective: Internal business: This perspective focuses on the things that a company has to do internally to meet and exceed customer expectations.

Goal: Productivity: This would concentrate on changes to the process involved in production.

Measure: How do we look to our shareholders?  Analysis: This would use data from the ERP system to look into success levels of company processes.

Innovation and improvement activities:

Perspective: Innovation and Learning: This perspective is concerned with making sure employees learn and grow so they can continually innovate.

Goal: Training: This would focus on providing enhanced training opportunities for employees.

Measure: What do we need to excel at? Results: This would look at changes in the skill level of employees.

Financial measures:

Perspective: Financial: This perspective has to do with the conversion of performance into financial performance and the creation of value.

Goal: Growth: This would concentrate on an increase in sales.

Measure: Can we continue to improve and create value?  Sales: This would be the annual sales figures.

Explanation:

The balanced scorecard which Bryan is developing for KanO Mines helps KanO Mines to understand how to create value in the organization.  With the balanced scorecard as a strategic planning and management tool, organizational goals are communicated to KanO Mines, so that his daily activities are aligned with the organizational strategy.  It also helps him to prioritize his projects, products, and services.  The balanced scorecard does not only deal with perspectives and goals, it also helps KanO Mines and his manager, Bryan, to measure and monitor his progress towards achieving the set organizational strategic goals.

4 0
3 years ago
A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or
Vlada [557]

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the <u>Time period principle.</u>

The time period principle- Financial results and other material business activities should be reported over a consistent time period, such as a month, week, day, etc., in accordance with the time period concept. Depending on the frequency of the chosen time period, the firm must then adhere to a distinct set of regulations for each financial statement in accordance with US Generally Accepted Accounting Principles.

Any company's financial statements can be thought of as a snapshot in time that reveals both the company's history and its current status. That's why it's crucial to disclose to readers the time frame in which the financial statements were generated in accordance with the time period concept.

In its broadest sense, the time period principle holds that any enterprise may conveniently categorize its financial operations into discrete time intervals. That is to say, all cash inflows and outflows may be neatly categorised into separate and sequential accounting periods.

<u></u>

To know more about Time period principle refer here:

brainly.com/question/13035515

#SPJ4

3 0
1 year ago
Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm’s manufact
Eduardwww [97]

Answer:

ISO 9000

Explanation:

In this question, the quality of standard being mentioned is known as the ISO 9000. This is a set of standards that helps organizations make sure that they are meeting the customer and shareholder needs as well as complying to the statutory and regulatory requirements that exist regarding the product or service. This is the main quality of standards that are enforced and required by the European Union for every firm in its marketplace.

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3 years ago
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