1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
spin [16.1K]
3 years ago
14

A company has only two divisions: division a and division

Business
1 answer:
Sloan [31]3 years ago
4 0

Answer – Division A

 

EXPLANATION’

 

Given for last year,

Division A made 60% of the company's total revenue.

Let the company’s total revenue for last year be x

60% of x = 0.6x

Division A made 0.6x last year

 

Also given for last year,

Division B made 40% of the company's total revenue.

If the company’s total revenue for last year is x

40% of x = 0.4x

Division B made 0.4x last year

 

For this year,

We are told that division A's revenue has decreased by 35%

Last year’s revenue was 0.6x

Division A’s revenue for this year = 0.6x – (35% of 0.6x)

= (100% of 0.6x) – (35% of 0.6x)

= (100% * 0.6x) – (35% * 0.6x)

= (100% - 35%) * 0.6x

= 65% * 0.6x

= 65/100 * 0.6x

= 0.39x

Therefore this year, Division A’s revenue is 0.39x

 

Again for this year,

We are told that division B's revenue has decreased by 5%

Last year’s revenue was 0.4x

Division B’s revenue for this year = 0.4x – (5% of 0.4x)

= (100% of 0.4x) – (5% of 0.6x)

= (100% * 0.4x) – (5% * 0.4x)

= (100% - 5%) * 0.4x

= 95% * 0.4x

= 0.38x

Therefore this year, Division B’s revenue is 0.38x

 

If Division A’s revenue is 0.39x, and Division B’s revenue is 0.38x; then Division A had higher revenue this year.

You might be interested in
A petty cash fund was established with a $350 balance. It currently has cash of $41 and petty cash tickets totaling $309. Which
Vesna [10]

Answer:

C. A credit to Petty Cash for $309

Explanation:

Based on the information given we were told that the PETTY CASH tickets total the amount of $309 which therefore means that the appropriate entry included in the entry to REPLENISH THE FUND will be :

A credit to Petty Cash for $309

(Replenish fund)

7 0
3 years ago
Select the incorrect statement regarding postaudits of capital investment decisions. Multiple Choice A postaudit should be condu
Finger [1]

Answer:

A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money

Explanation:

A post audit defines the analysis of an outcome with respect to the capital budgeting investment. It is to be conducted at the closing of the period. Also it measures whether the project should be accepted or rejected via details assumption analysis but also it considered the times value of the money

Therefore the above statement should be considered

And, hence, the other options should be considered as wrong

4 0
3 years ago
Hector is a married, self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exch
Korvikt [17]

Answer:

The answer to this question is option  B. Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.

Explanation:

Hector can deduct the cost of the premium for AGI if Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.

7 0
3 years ago
Now we will focus on Risk in a Portfolio Context.
ololo11 [35]

Answer:

See explanation below

Explanation:

Correlation Coefficient - The degree of the relationship between two variables.

Correlation - The tendency of two variables to move together.

Capital Asset Pricing Model - This represent the return that reflects risk remaining after diversification.

Market Portfolio - A portfolio consisting of all stocks.

Expected Return on a Portfolio - This represents the weighted average of the expected returns on individual components.

Market Risk Premium - The difference between the market rate of return and the risk free rate

Beta - The variable that shows the extent to which a stock’s return moves up or down with the market.

S&P 500 is empirically used to measure Beta

8 0
2 years ago
Chen Company’s Small Motor Division manufactures a number of small motors used in household and office appliances. The Household
liq [111]

Answer:

a. $11

b. $35

c. If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.

Explanation:

The minimum acceptable price is the price that is acceptable to the transferring division and out of a range of acceptable prices, it is that which would be the best for the company.

When there is excess capacity.

Note : No opportunity costs would exist.

Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost

                                            = $11

When there is excess capacity.

Note : Opportunity costs would exist.

Minimum acceptable price = Variable Cost - Internal Savings + Opportunity Cost

                                            = $11 + ($35 - $11 )

                                            = $35

Why Capacity of transferring division (Small Motor Division) has an effect on the transfer price.

If the transferring division does not have excess capacity,this would mean that some units that could have been sold externally would be transferred internally and this creates an opportunity cost. Opportunity costs increase the transfer price.However no opportunity cost exist if transferring division has excess capacity and hence a lower transfer price.

3 0
3 years ago
Other questions:
  • Which one of the following accounts will have a credit balance?
    11·1 answer
  • In a progressive tax system, who pays a greater proportion of their income in taxes?
    5·1 answer
  • Identify the careers that require a college degree and those that require technical training.
    15·1 answer
  • Stories Company purchased equipment and these costs were incurred:Cash price $22,500Sales taxes 1,800Insurance during transit 32
    5·1 answer
  • Taj study process technology in college. He understands how to keep chemicals at the correct temperature for them to be used in
    10·1 answer
  • Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next, a
    15·1 answer
  • Jefferson tutoring had the following payroll information on Feb 28:
    6·1 answer
  • A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610.
    12·1 answer
  • How does the business cycle affect consumers? check all that apply.
    15·1 answer
  • Target marketing differs from mass marketing in that target marketing :_________
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!