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mestny [16]
3 years ago
12

Milli Company plans to discontinue a division that generates a total contribution margin of $20,000 per year. Fixed overhead ass

ociated with this division is $50,000, of which $5,000 cannot be eliminated. The effect of this discontinuance on Milli's operating income would be an increase of:
Business
1 answer:
Alenkasestr [34]3 years ago
8 0

Answer:

Increase in operating income $25,000

Explanation:

The effect of the discontinue on operating income is shown below:

Fixed overhead cost ($50,000 - $5,000) $45,000

Less: contribution margin per year -$20,000

Increase in operating income $25,000

We simply deduct the contribution margin from the fixed overhead cost so that the increase in operating income could come

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"At that time, the market price of ABC is $44. If the market rises to $58 and the call is exercised (the put expires out the mon
steposvetlana [31]

Answer:

600 loss

Explanation:

The computation of the gain or loss is shown below:

Since on Jan, there is a put option of 45 at $3 and the market rises to $58

So it losses by 13 points i.e

= 45 - 58

= 13

Now the total premium points collected is of 7 i.e

= 4 + 3

= 7

So, the remaining points left is

= 13 - 7

= 6

So for 6 points, the net loss is $600

7 0
4 years ago
This is a good question to ask during an interview A) How many vacation days do I get? B) What kind of products or services do y
jeka94

Answer:

C) How many hours of training will I need?

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3 years ago
Steven's Co. provides the following sales forecast for the next three months: July August September Sales units 5,000 5,700 5,56
Ipatiy [6.2K]

Answer:

d. 5,175 units.

Explanation:

The computation of the budgeted production units for July is shown below:

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is 5,000 units

Ending finished inventory units = 5,700 units × 25% = 1,425 units

Beginning finished inventory units = 1,250 units

Now put these units to the above formula  

So, the units would equal to  

= 5,000 units + 1,425 units - 1,250 units

= 5,175 units

5 0
3 years ago
Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.
Savatey [412]
<span>Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.

SHIP

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4 0
4 years ago
The price elasticity of demand measures the:A. responsiveness of quantity demanded to a change in quantity supplied.B. responsiv
gulaghasi [49]

Answer:

C. responsiveness of quantity demanded to a change in price

Explanation:

Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

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3 years ago
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