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bekas [8.4K]
3 years ago
8

Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year is as follows: COLLARS LEAS

HES TOTAL Sales revenue $210,000 $150,000 $360,000 Variable expenses $135,000 $120,000 $255,000 Contribution margin $75,000 $30,000 $105,000 Fixed expenses $56,000 $38,000 $94,000 Operating income (loss) $19,000 ($8,000) $11,000 If $27,435 in fixed costs will be eliminated by dropping the LEASHES line, how will TOTAL operating income be affected after the Leashes line is dropped? If income drops, use a negative sign in front of the number.
Business
1 answer:
Temka [501]3 years ago
8 0

Answer: -$2,565

Explanation:

Operating Income with the Leashes line is $11,000.

If the Leashes line is dropped, the operating income would be:

= Sales of Collars - Variable expenses - Fixed expenses of Collars - Residual fixed expenses pf Leashes

= 210,000 - 135,000 - 56,000 - (38,000 - 27,435)

= $‭8,435

Change in Total income =  Income without Leashes - Income with LEASHES

= 8,435 - 11,000

= -$2,565

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If the government decided that each family needs a minimum income of $25,000 and promised to make up the difference between what
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Answer:

d. All of the above are correct.

Explanation:

In the case when the government decided that each kind of family required atleast income i.e. $25,000 so it would decrease the work incentive for earning till to $25,000 also it should be taxed by the government. In addition to this, in the case when the workers are discouraged so they miss on the job training and limits their capability for improving out their skills

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7 0
3 years ago
Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:
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Answer:

Part a. Compute the unit product cost under absorption costing.

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        Direct materials                                                                         $ 165

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         Variable manufacturing overhead                                            $ 8

Fixed Overheads per unit:

       Fixed manufacturing overhead ($535,500/10,500)                  $ 51

Unit product cost                                                                                $296

Part b. Compute the unit product cost under variable costing.

Variable costs per unit:

        Direct materials                                                                         $ 165

         Direct labor                                                                                $ 72

         Variable manufacturing overhead                                            $ 8

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Explanation:

Part a. Compute the unit product cost under absorption costing.

Absorption costing treats fixed overheads as part of product cost and hence fixed manufacturing overheads are included in unit product cost at their absorption rate

Part b. Compute the unit product cost under variable costing.

Variable Costing System treats fixed overheads as a Period Cost and not part of product cost hence fixed manufacturing overheads are excluded in unit product cost

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See explanation below foe answer.

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Resource partitioning is a term that refers to the division of resources that are limited by species in order to avoid competition in an ecological niche. In an environment where organisms are in constant  competition for limited resources, there arises the need for the organisms and different species to find ways in which to coexist with one another.

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5 0
3 years ago
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