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Ierofanga [76]
2 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]2 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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What is the impact on the total asset turnover ratio if sales increase significantly while there is no change in any of the othe
Ostrovityanka [42]

Answer:

The total turnover increases

Explanation:

Asset Turnover Ratio is a measure of how efficient the assets of a company is when compared with the company's sales or revenue. To calculate Asset turnover ration, the<u> net sales is set as a percentage of the company's total assets. </u>

The higher the turnover of the asset based on the calculation then the higher the chances that organisation is generating revenue efficiently from its assets.  A lower turnover however is the implication that the company is not efficiently using its assets and it could imply some internal issues.

Therefore, the higher the sales without any change in assets means the Asset Turnover will increase or be higher and it will indicate higher efficiency

4 0
2 years ago
A ______ exists when there is a substantial difference between an expected condition and the actual condition.
KiRa [710]
The answer to this question is a problem.

Problem is a situation that everybody encounters that is needed for a solution or a specific result. Problems cannot be ignored or avoided, a person should should know how to solve it and deal with the problem once it hits you. In order to deal with problems, a person should always focus on the outcome and the possible solution to it.
5 0
3 years ago
What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? a. $17,690 b. $18,621
hammer [34]

Answer:

PV= $20,632.89

Explanation:

Giving the following information:

Annual payments= $4,700

Interest rate= 4.5%

Number of years= 5

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {4,700*[(1.045^5) - 1]} / 0.045

FV= $25,712.34

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 25,712.34/(1.045^5)

PV= $20,632.89

3 0
3 years ago
Gross domestic product is the monetary value of ______.
Agata [3.3K]

Answer:

GDP stands for "Gross Domestic Product" and represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year). GDP is the most commonly used measure of economic activity.

Explanation:

3 0
2 years ago
In the summer of 1998, Dr. Rumelt, a professor and consultant, got an opportunity to talk with Steve Jobs about strategy. Rumelt
Lubov Fominskaja [6]

Answer:

The tech market is dynamic

Explanation:

The reason is that at that time the tech solutions were not highly demanded because of the lower number of users at that time which means that the riskiness of tech investment was high and till today. That's the reason why tech companies are the highly valued organizations of the world. The world is changing all because of the fact the tech is revolutionizing the industry and the consumer choices. The higher risk of tech companies is because the newer technology gets in the market so fast that the company's product may be rejected in the way that its decrease in product sale will sufficiently increase the losses which we can't assume. Just take a look at Dell, Konika, or other tech companies. These companies were most valued companies in the world and today these are loss making engines. So the answer is correct the tech market is dynamic market because the tech inventions can change the tech market anytime.

5 0
3 years ago
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