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Ierofanga [76]
3 years ago
7

Fabri Corporation is considering eliminating a department that has an annual contribution margin of $27,000 and $73,000 in annua

l fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:
Business
1 answer:
faltersainse [42]3 years ago
6 0

Answer:

$29,500

Explanation:

The calculation of annual financial advantage (disadvantage) is shown below:-

If continues

Loss = Contribution - fixed cost

= $27,000 - $73,000

= $46,000 loss

If Eliminates,

Savings = Loss - Fixed cost

= $46,000 - $16,500

= $29,500

Therefore for computing the annual financial advantage (disadvantage) we simply deduct fixed cost from loss.

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See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased add
RoseWind [281]

Answer:

The net impact on the income will be 2,795,000 each year

Explanation:

The purchase will generate the followng:

4.3 depreciation expense

and a tax shield, as this expense decrease the net income:

depreciation x tax-rate = tax-shield

4.3 x 35% = 1.505 millions

total impact on net income:

depreciation expense - tax shield

4.3 - 1.505 = 2.795‬ millions net impact

4 0
3 years ago
The crossover point is that production quantity where: _________
Vanyuwa [196]

The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.

<h3>What is crossover point?</h3>

Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."

When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

Thus, option D is correct.

For more details about crossover point, click here:

brainly.com/question/13845784

#SPJ4

All options are missing firm the question-

a. variable costs of one process equal the variable costs of another process.

b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

e. the process no longer loses money.

4 0
2 years ago
Alice is single and self-employed in 2019. Her net business profit on her Schedule C for the year is $150,000. What is her self-
JulijaS [17]

Answer:

$19,790

Explanation:

A taxpayer’s tax base for computing a self-employed taxpayer’s self-employment tax (i.e., net earnings from self-employment) is the taxpayer’s net business profit from Schedule C multiplied by 92.35%.

So, Alice’s net earnings from self-employment is her net profit from Schedule C of $150,000 x 92.35% = $138,525.

Alice will owe $15,773 ($127,200 maximum amount x 12.4%) in Social Security taxes and $4,017 ($138,525 x 2.9%) for the Medicare component of FICA taxes.

Alice owes total self-employment tax of $19,790 ($15,773 + $4,017).

She is not subject to additional Medicare tax because her net earnings from self-employment do not exceed $200,000.

4 0
3 years ago
Read 2 more answers
A smartphone manufacturing company uses social media to achieve different business objectives. Match each social media activity
bekas [8.4K]

Explanation:

Following is the correct matching of different social media activities with the objectives of the company.

Releases videos of its new, high tech smartphone manufacturing facility

To give consumers a peek into its operations

Hosts an online sweepstakes and gives the winners an extended warranty on a smartphone model

To increase brand loyalty  

Gives bloggers a new smartphone handset before the model is on the market

To create consumer awareness about a new product

Ask customers to determine their next model using hashtag #NEWMODEL

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5 0
3 years ago
Read 2 more answers
In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be most hel
Nookie1986 [14]

Answer:

The question is incomplete, please see complete question below:

Following several years of declining advertising sales, the Greenville Times reorganized its advertising sales force two years ago. Before the reorganization, the sales force was organized geographically, with some sales representatives concentrating on city-center businesses and others, on different outlying regions. The reorganization attempted to increase the sales representatives' knowledge of clients' businesses by having each sales representative deal with only one type of industry or of retailing. After the reorganization, advertising sales increased.

In assessing whether the improvement in advertising sales can properly be attributed to the reorganization, it would be helpful to find out each of the following EXCEPT:

A.Two years ago, what proportion of the Greenville Times' total revenue was generated by advertising sales?

B.Has the circulation of the Greenville Times increased substantially in the last two years?

C.Has there been a substantial turnover in personnel in the advertising sales force over the last two years?

D.Before the reorganization, had sales representatives found it difficult to keep up with relevant developments in all types of businesses to which they are assigned?

E.Has the economy in Greenville and the surrounding regions been growing rapidly over the last two years?

The correct answer is

<em>A.Two years ago, what proportion of the Greenville Times' total revenue was generated by advertising sales? </em>

Explanation:

The  proportion of the Total Revenue (TR) generated by advertising sales is of no significance. Our objective is to find out if there was an improvement in advertising sales that can  properly be attributed to the reorganization.

4 0
3 years ago
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