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nikdorinn [45]
3 years ago
8

Vegas Company is considering eliminating an unprofitable segment. The segment’s fixed costs are avoidable and are less than its

contribution margin. Which of the following is a true consequence of eliminating this unprofitable segment?A.Overall net income will decrease.B.Overall fixed costs will increase.C.Overall contribution margin will increase.D.Overall variable costs will increase.
Business
2 answers:
Advocard [28]3 years ago
7 0

Answer:

A. Overall net income will decrease.

Explanation:

When the contribution margin of an unprofitable segment is less than the fixed costs, the net income of the company will increase if it eliminates that unprofitable segment.

However, it is not advisable to eliminate an unprofitable segment if its contribution margin is greater than the fixed costs, because it will be contributing to the recovery of the fixed costs it is not eliminated. But if it is eliminated, the overall net profit of the company will decrease due to the loss of contribution to the recovery of the fixed costs from the eliminated segment.

Therefore, the true consequence of eliminating the unprofitable segment by Vegas Company is that its overall net income will decrease.

Paraphin [41]3 years ago
3 0

Answer:

Option A,overall net income will decrease

Explanation:

The rule is that an unprofitable segment should be eliminated if its contribution is negative or zero.

In other words, a good justification for closing up an unprofitable segment of a business is when its contribution(sales-variable costs) is equal to or less than the fixed costs

If Vegas Company closes the unprofitable segment the overall net income will decrease because the segment's contributes to recovery of fixed costs since its contribution margin is more than its fixed costs,hence closing it brings about increased costs and reduced net income

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Nastasia [14]

The case of Dole bananas has been referred to in the press and business publications as an example of right-minded import protection in the United States.

<h3>What was the case of Dole bananas?</h3>

Dole Foods used a litigation strategy in US courts to discredit Nicaraguan plantation workers, demonstrating how corporations can use the legal system to avoid providing compensation for human rights violations.

In 2004, a group of Nicaraguan banana plantation workers sued Dole and Dow Chemical Companies for causing them to become sterile as a result of their exposure to a US-banned pesticide (DBCP), which the companies told them to use on Nicaraguan plantations in the 1970s.

Therefore, the Dole bananas case has been referred to in the press and business publications as an example of right-minded import protection in the United States.

To learn more about the Dole bananas case, click here:

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6 0
1 year ago
A document which shows how much a customer has to pay, for what and by when​
blondinia [14]

Answer:

A Bill

Explanation:

A bill is a request for payment. A bill is usually considered from the customer's standpoint. It's common to receive a bill without an invoice, as in a restaurant or retail store. A bill is usually given with the expectation of immediate payment.

5 0
3 years ago
W. L. Gore &amp; Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command.
Harrizon [31]

Answer:

B) a decentralized structure.

Explanation:

In a decentralized organizational structure, many decision making responsibilities are delegated from upper management to middle and lower management. Most normal day-to-day decisions are made by entry level employees and lower management. The company's organizational structure is not rigid and most decisions can be made rather quickly.

5 0
3 years ago
Net income is shown on the end-of-period spreadsheet in the Income Statement debit column and the Balance Sheet credit column.
enyata [817]

Answer:

True

Explanation:

It is True because net income is shown in the Balance sheet as a credit account as it increases the revenues and as a  debit column in the Income Statement  of the end-of-period spreadsheet.

This entry is reversed for the net loss. It would be shown as a debit column in the Balance Sheet ( indicating an expense/ a loss) and as a credit column in the income statement.

The net income is shown as a debit column in the Income Statement  of the end-of-period spreadsheet indicating that the credits ( revenues) are more than the debits ( expenses) and we get the balance of the income after deducting the expenses from the revenues. It is entered above the debit totals.

8 0
3 years ago
The stockholders’ equity section of Marigold Corp.’s balance sheet consists of common stock ($7 par) $959,000 and retained earni
den301095 [7]

Answer:

Find below the pre stock dividend and post stock dividend effects.

Explanation:

Before the declaration of stock dividend the equity section of the balance sheet would look thus:

Common stock ($7 par)                  $959,000

Paid in capital in excess of par            -

Total paid in capital                         $959,000

Retained earnings                           $410,000

Total shareholders' equity              $1,369,000

However,upon declaration of the stock dividend which would be funded from retained earnings by reducing the retained earnings and increasing the common stock as well as paid in capital in excess of par.

Common stock ($7 par)($7*13,700)+$959,000           $1,054,900                  

Paid in capital in excess of par($18-$7)*13,700            $150,700

Total paid in capital                                                        $1,205,600

Retained earnings    $410,000-($18*13,700)                  $163,400

Total shareholders' equity                                              $ 1,369,000

4 0
3 years ago
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