Answer:
Vera Incorporated
Change in annual operating income from discontinued business:
Annual Operating Income would reduce by $78,000.
Explanation:
a) Calculation of the Net Income Lost:
Loss of Contribution ($99,000)
Avoidable fixed cost $21,000
Reduction of Income ($78,000)
b) The line of purses contributes $80,000 towards the company's fixed cost. Therefore, discontinuing this line of business would lead to the loss of this steam of income. The amount of reduced operating income will be $78,000 ($80,000 - 2,000).
The type of presentation that Professor Buchanan give is
sales presentation. Sales presentation is a strategy that involves with selling
a product or the product or sales that is provided to the consumers are being
closed or is being initiated by the seller.
Answer:
D) $15,000.
Explanation:
190,000 excess of value Building amortized over 10 years: 19,000
70,000 lesser value on Equipment amortized over 5 years: 14,000
We will amortize the building at a rate of 19,000 dollar per year
and we will amortize the equipment at 14,000 per year
the inventory as still is in the company's possesion will also need to be adjsuted
10,000 + 19,000 - 14,000 = 15,000
