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victus00 [196]
3 years ago
15

Fabio Corporation is considering eliminating a department that has a contribution margin of $39,000 and $78,000 in fixed costs.

Of the fixed costs, $19,500 cannot be avoided. The effect of eliminating this department on Fabio's overall net operating income would be:
Business
1 answer:
OleMash [197]3 years ago
7 0

Answer:

a decrease of $39,000.

an increase of $39,000.

a decrease of $19,500.

an increase of $19,500.

The correct option is the last one,an increase of $19,500

Explanation:

The impact on net operating income when the department is eliminated in Fabio Corporation is the company would lose the contribution margin of $39,000 and avoidable fixed cost,hence overall effect of the elimination is the difference between the contribution margin lost and the avoidable fixed costs which is computed thus:

Lost contribution margin   $39000

Unavoidable fixed cost   $19,500

Total fixed costs

avoidable fixed cost=$78,000-$19,500=$58,500

decrease in overall  net operating income=$58,500-$39,000=$19,500

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<h3>What is a Bond?</h3>

This refers to the fixed income investment which is used to show that a loan is taken by either an individual or corporation.

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4 0
2 years ago
A sudden increase in inflation, ceteris paribus, a. Raises the real income of lenders relative to borrowers. b. Raises the CPI a
Nikitich [7]

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Explanation:

Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.

Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.

6 0
3 years ago
Mickey is a 12-year-old dialysis patient. Three times a week for the entire year he and his mother, Sue, drive 20 miles one way
gavmur [86]

Answer:

The right approach will be "$ 1123.2".

Explanation:

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4 0
3 years ago
Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of?
mylen [45]

Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of a and b.

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#SPJ4

The question is incomplete. Please read below to find the missing content.

Investors select a stock based on the case they expect to receive from that stock. That cash comes in the form of ____.

a. Dividends

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7 0
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labwork [276]

The characteristic of value that is represented here is <u>C. Situs.</u>

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