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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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In a market without price controls, producers can charge the _____, so that consumers will buy all of their products. I Need Hel
Arada [10]

Answer:

equilibrium price

Explanation:

At the equilibrium point, the market does not experience a shortage or excess in either demand or supply. The quantity demanded matches the quantity supplied.  The equilibrium price is the price at the equilibrium point where demand and supply meet.

Because there are no shortages or excesses at the equilibrium point, suppliers will sell all their products if they set a selling price equal to the equilibrium price. Buyers will purchase all the quantities supplied at the equilibrium price.

5 0
3 years ago
What are the concerns in cash management, and how does cash management iss help financial managers?
PtichkaEL [24]

The cash management can help financial managers in the  collecting and managing cash flows from the activities of the firm.

<h3>How can cash management can help financial managers ?</h3>

Cash management, which is a treasury management,  can be of help to the financial managers by helping them to be able to manage cash flows from the operating activities of the firm.

This could range from the  investing, and financing activities of the firm and it help in achieving the financial goal of of the organization.

Learn more about  cash management at:brainly.com/question/735261

#SPJ12

4 0
2 years ago
This cartoon can be read and enjoyed on several levels. Which statement best captures the economic message of
makvit [3.9K]

Answer:

The correct statement lies in option C.

Monopolies negatively affect consumers.

Explanation:

  • The statement that best captures the economic message of the cartoon is that monopolies negatively affect consumers.
  • When a specific enterprise or person is the only supplier in the market, it is called monopoly.
  • Monopoly can result to higher prices of the good, also known as price taker as there is no other enterprise which can supply the same good.
  • Here, Santa Claus is the monopoly as he is the only supplier of gifts in Christmas so he gets sloppy and result in low output in his work.
5 0
3 years ago
Eric believes works hard he will meet management's goals and that if he meets management's goals, he will get a raise, which he
Elden [556K]

Answer:

Expectancy theory

Explanation:

Expectancy theory - is referred to as the approach in which individual work according to the defined goal. People are motivated to act in a certain way because they believe to have expected results from the way they have selected.  

It also states that desirable outcomes of any behavior hold the motivation by other people

The three main components on which Expectancy theory work are:

- Expectancy

- Instrumentality

- valence

7 0
3 years ago
The following information was available for the year ended December 31, 2019: Net sales $ 894,250 Cost of goods sold 616,850 Ave
iogann1982 [59]

Answer:

Explanation:

Net sales - $894,250

Cost of Goods - $ 616850

Average account receivable - $40,650

Account receivable at year end - $28200

Average inventory - $182000

Inventory at year end - $158,000

Inventory turn over

Cost of Goods sold / Average inventory for the period

616850/182000= 3.40 times

No of days sales in inventory = Ending inventory / Cost of Goods sold *365

158000/616850*365 = 93.5 days

Account receivable turnover = net credit sale / average receivable

894250/40650=21.9

No of days sales in account receivable -

Receivable at year end/total credit sales*365

28200/894250*365= 11.5 days

7 0
3 years ago
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