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
Rudiy27
2 years ago
15

The operations of Winston Corporation are divided into the Blink Division and the Blur Division. Projections for the next year a

re as follows:
Blink Division Blur Division Total
Sales $ 295,000 $ 174,000 $ 469,000
Variable costs 101,000 80,000 181,000
Contribution margin $ 194,000 $ 94,000 $ 288,000
Direct fixed costs 87,000 73,000 160,000
Segment margin $ 107,000 $ 21,000 $ 128,000
Allocated common costs 42,000 34,500 76,500
Operating income (loss) $ 65,000 $ (13,500 ) $ 51,500
Required:
1. If the Blur Division were dropped, Blink Division's sales would increase by 30%. If this happened, the operating income for Winston Corporation, as a whole, would be ___________.
A) $84,500.
B) $65,000.
C) $88,700.
D) $66,950.
Business
1 answer:
ycow [4]2 years ago
5 0

Answer:

c. $88,700

Explanation:

The computation of operating income for Winston Corporation is shown below:-

Particulars              Dropping before              Dropping after

Sales a                  $469,000                           $383,500

                                                                         ($295,000 × 130%)

Variable cost b     $181,000                              $131,300

($101,000 × 130%)

Contribution margin $288,000                          $252,200

(c = a - b)

Direct fixed cost d  $160,000                          $87,000

Segment margin e $128,000                           $165,200

(e = c - d)

Allocated common cost f $76,500                  $76,500

Operating income(loss) $51,500                      $88,700

(g = d - e)

Therefore to reach the operating income(loss) we simply deduct the allocated common cost from segment margin.

You might be interested in
true or false filtering data in Excel online keeps all data on the screen and highlights the content that fits your criteria​
mrs_skeptik [129]

The answer would be true. The reason for that is because excel automatically saves what you added on the sheet.

7 0
3 years ago
Read 2 more answers
There is no nation involved in global trade that still maintains a fixed value of their currency relative to a key currency or g
kirza4 [7]

Answer:

a. true

Explanation:

  • Gold is a currency that is the free market system that will fluctuate tp the form of exchange and no country in international trade can maintain a fixed value of its currency relative to the key currency though they can trade gold in multiple ways and can participate in price movements.
6 0
3 years ago
Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit t
Strike441 [17]

Answer:

The gross profit margin of Candy Company is 65% (second option)

Explanation:

The gross profit margin is defined as:

Mg = (sales - costs) / price of sales  

If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:

Mg = ($320,000- $112,000) * 100% / $320,000  =  

Mg = $208,000 * 100% / $320,000  =  0.65 * 100%

Mg  =  0.65 * 100%  

Mg  =  65%  

6 0
3 years ago
According to the Core Reading, which of the following is NOT a threat presented by rising income inequality? Select one: a. High
Vilka [71]

Answer:

 Option B          

Explanation:

In simple words, Income inequality refers to the severe imbalance in wealth levels typically in the possession of a limited minority of a community with a large accumulation of wealth.

If wealth disparity exists, there is indeed a wide difference in the resources of one group of the society and that of another. Specific forms of discrimination and study of wage differences should be used to explain economic inequality.                      

          Thus, from the above we can conclude that the correct option is B .

4 0
2 years ago
The competitive equilibrium rent in a standard two bedroom apartment in lawrence (a city) is $600. now suppose the city council
Mekhanik [1.2K]
<span>Setting a rent control price ceiling will cause the same impact as any other price ceiling that is below the market equilibrium price: it will create a shortage in the market. At the price equilibrium of $600, the number of renters would exactly meet the number of available 2 bedroom apartments. However, with this fixed price ceiling, the position along the demand curve will shift to one of higher demand, with no analogous change in the supply curve. Thus there will be more renters than can be supported, and renters will have to look for alternatives and substitutes.</span>
8 0
3 years ago
Other questions:
  • If I currently sell 10,000 units, and my use of Formula 1 indicates that I will need to sell 500 additional units to justify my
    7·1 answer
  • After preparing the firm's trial balance, cole's accounting staff notices that the total of the debit column is $52,500, while t
    7·1 answer
  • New Products pays no dividend at the present time. Starting in Year 3, the firm will pay a $0.25 dividend per share for two year
    10·1 answer
  • In government-wide financial statements, the assets acquired under a capital lease would be reported at ____ (A) The total of al
    8·1 answer
  • Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, th
    13·1 answer
  • Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sell
    8·1 answer
  • Adrian Atwood, a senior manager at MNC, spends a lot of his time assigning group members to particular tasks and scheduling thei
    13·1 answer
  • On average, workers in Australia can produce 3 units of agriculture output or 9 units of manufacturing output per day. In Guyana
    10·1 answer
  • Which statement(s) most directly apply to capitalism? i. there is heavy government regulation of industry. ii. individuals can s
    8·1 answer
  • the builders of the transcontinental railroad used legal and illegal means to cut costs and finance construction. which phrases
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!