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
masha68 [24]
3 years ago
11

Carla Vista Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,0

00, variable expenses of $360,000, and fixed expenses of $148,000. Therefore, the gloves and mittens line had a net loss of $8,000. If Carla Vista eliminates the line, $36,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line.
Business
1 answer:
riadik2000 [5.3K]3 years ago
4 0

Answer and Explanation:

The Preparation of analysis showing whether the company should eliminate the gloves and mittens line is shown below:-

Particulars           Continue                  Eliminate                Net Income

                                                                                     Increase (Decrease)

Sales                   $500,000                     0                           ($500,000)

Variable

expenses           $360,000                      0                            $360,000

Contribution

margin               $140,000                       0                             ($140,000)

Fixed costs       $148,000                   $36,000                     $112,000

Net income      ($8,000)                     ($36,000)                   ($28,000)

The analysis showing that the Carla Vista Corporation should manufacture gloves and mittens else there loss will be increased by $28,000

You might be interested in
Which of the following is a poor label for a category level file folder?
Andru [333]
For a level file folder, your categorization must be clear and precise so it would be easier for you to store your information.

a poor label for this is only using an alphabet rather than full word

Bad example : Using the letter 'R' to replace 'reimbursement' folder, it's best to just label it as reinbursement

6 0
3 years ago
Corny and sweet grows and sells sweet corn at its roadside produce stand. the selling price per dozen is​ $3.75, variable costs
ANEK [815]
If corny and sweet grows and sells sweet corn at its roadside produce stand. the selling price per dozen is $3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00, the breakeven sales will be $ 1, 125. Breakeven sales are computed by dividing the company's expenses with the margin ratio.
7 0
3 years ago
Mackalya is an office secretary at the "All American Office Products Company." This Company sells office supplies and office equ
Bogdan [553]

Answer:

1. Yes; Journal entry

2. Debit- Printing & Stationery Expense $160 (value for 8 boxes)

Credit- Cost of goods sold or Trading account A/c $160

3. Leaves to the cost of goods sold account

Explanation to:

1. Mackalaya used inventory. Remember, inventory is a term used to refer to all the merchandise (goods or products) a company has at the moment in stock.

2. The Journal entry to be made would be

Debit- Printing & Stationery Expense $160 and Credit this value to Cost of goods sold or Trading account A/c section of the Journal entry.

3. Remember, the cost of goods sold cares for all inventory sales, therefore it would be credited with value of the inventory item sold by the company.

6 0
3 years ago
On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50
Marrrta [24]

Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

4 0
3 years ago
3. Which is the correct order for making financial decisions? A) put goals in writing, rethink goals if necessary, have a plan o
Mekhanik [1.2K]

Answer:

B

Explanation:

Setting up realistic goals is key to saving money. Why would you want to save for a car when you are 12? You would rather save to get a new tablet or toy.

Realistic could also mean achievable why would you set a goal that has a low chance of you reaching such as becoming a millionaire and so on.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following is false regarding the statute of frauds? a. It relates to fraudulent contracts. b. It does not address i
    14·1 answer
  • Employees who are travelling can connect securely to their office network through the internet when a ________ has been establis
    13·1 answer
  • Marc and michelle are married and earned salaries this year of $69,200 and $13,950, respectively. in addition to their salaries,
    7·1 answer
  • If the u.s. government provided military equipment to egypt, it would be an example of _____
    13·2 answers
  • The Uptowner will pay an annual dividend of $3.26 a share next year with future dividends increasing by 2.8 percent annually. Wh
    12·1 answer
  • A____ helps you plan and organize your finances.
    10·1 answer
  • Pinnacle Corp. budgeted $259,470 of overhead cost for the current year. Actual overhead costs for the year were $209,420. Pinnac
    10·1 answer
  • 1) When quantity demanded in a market is more than the quantity supplied, _____ occurs.
    9·1 answer
  • Rather than looking for problems, ________ seeks to identify the unique qualities and special strengths of an organization, whic
    9·1 answer
  • Explain the concept of a Pereto Chart - provide an example - explain how the concept of the Pereto Chart might be used in making
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!