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andrew11 [14]
3 years ago
7

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a

contribution margin of $5. If Product X is discontinued, $18,000 of fixed overhead would be eliminated. As a result of discontinuing Product X, the company's overall operating income would:_______.
A. Decreaseby $25,000
B. Increase by $43,000
C. Decrease by $7,000
D. Increase by $7,000
Business
1 answer:
Jlenok [28]3 years ago
5 0

Answer:

C. Decrease by $7,000

Explanation:

Calculation to determine what company's overall operating income would Decrease by

Using this formula

Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated

Let plug in the formula

Overall operating income=(5,000 units*$5)-$18,000

Overall operating income=$25,000-$18,000

Overall operating income=$7,000 Decrease

Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000

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Answer:

Executive summary

Explanation:

It provides information about the business's purpose.

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3 years ago
Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2013. The notes included:Note A:
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Answer:

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3 years ago
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snow_lady [41]

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6 0
3 years ago
trade-oriented sales promotions are directed at . multiple choice question. customers that are unhappy with your brand and are c
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Trade-oriented sales promotions are directed at B. wholesalers, retailers, or distributors.

<h3>What are Trade-oriented sales promotions ?</h3>

Trade-oriented sales promotion programs are aimed at the company's dealer network to compel them to promote the company's brand more than competing brands. It is sometimes referred to as a "push strategy," and it is aimed at the dealer network in order to encourage them to promote the brand to customers by giving it precedence over competing products.

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Karen is a new manager in a department that has several people from different countries and cultures (including Africa, Australi
Lelu [443]

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A. Karen understans and appreciates religious beliefs of other cultures

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