Which best explains why banks consider interest on loans to be important?

Younie Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $95,40

zalisa [80]

Answer:

$122,500

Explanation:

Calculation for the amount of the common fixed expense not traceable to the individual divisions

First step is to calculate Total segment margin

Total segment margin = $43,600 + $174,300

Total segment margin= $217,900

Now let calculate the Common fixed expense

Common fixed expense = $217,900-$95,400

Common fixed expense $122,500

Therefore the amount of the common fixed expense not traceable to the individual divisions is $122,500

8 0

3 years ago

The SP Corporation makes 48,000 motors to be used in the production of its sewing machines. The average cost per motor at this l

gizmo_the_mogwai [7]

Answer:

f the company buys the component, income will decrease by $148,800.

Explanation:

We will take into account only the avoidable costs.

Make in-house:

Direct materials $ 10.70

Direct labor $ 9.70

Variable manufacturing overhead $ 4.05

Total unitary cost= $24.45

Buy:

Price= $27.55

We need to determine the total cost of both options:

Make in-house= 24.45*48,000= $1,173,600

Buy= 27.55*48,000= $1,322,400

Difference= 1,173,600 - 1,322,400= $148,800

If the company buys the component, income will decrease by $148,800.

3 0

3 years ago

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total

Doss [256]

Answer:

b. $25,400

Explanation:

Please see attachment .

3 0

3 years ago

Which of the following definitions is correct? Multiple Choice Accounting profit + economic profit = normal profit. Economic pro

irga5000 [103]

Economic profit = Accounting profit - Implicit costs is correct

Explanation:

Economic profit includes income minus implied (opportunity) and explicit (currency) costs, while accounting profit includes benefit minus explicit cost.

The monetary risks a organization has are clear. The cost of competition of the capital of a organization are tacit costs.

The administrative expenses a corporation carries out and the income a business receives are the accounting benefit. This is the income from bookkeeping that comes beyond economic benefit.

Benefit accounting= net currency profit-total expenses.

Economic benefit is the expense of money and incentive of a business paying and the profits earned by an firm.

Company benefit= total income–(explicit cost + implicit cost).

5 0

3 years ago

Carol expects to receive $1,000 at the end of each year for 5 years. The annuity has an interest rate of 10%. The present value

Gre4nikov [31]

Answer:

$3,791

Explanation:

Given that

Expected amount received = $1,000

Number of years = 10 years

Rate of interest = 5

So, the present value of this annuity would be

= Expected amount received × PVIFA factor at 5 years at 10%

= $1,000 × 3.7908

= $3,791

Refer to the PVIFA table

Simply we multiplied the expected amount received by the PVIFA factor

5 0

3 years ago