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
Digiron [165]
2 years ago
10

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashio

n line is used to increase the production of Hiking boots by 250%, how will operating income be affected
Business
1 answer:
horrorfan [7]2 years ago
7 0

Answer:

A) Increase $137,500

Explanation:

Calculation for how will operating income be affected

CHANGE IN OPERATING INCOME

Sales Revenue (Additional) $850,000

(250 %* 340,000)

Less Variable expenses (Additional) ($587,500)

(250 % *$ 235,000)

Contribution Margin $ 262,500

($850,000-$587,500)

Less Fixed Expenses ($76,000)

($262,500-$76,000)

Operating Income $ 186,500

( $ 262,500-$76,000)

Less Previous Operating Income ($49,000)

Operating Income $137,500 Increase

($ 186,500-$49,000)

Therefore the operating income will increase by $137,500

You might be interested in
Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common
Liono4ka [1.6K]

Answer:

See Explanation Below

Explanation:

Formula:

Shares is calculated by multiplying common stock by duration (in years)

1.

Given

Number of common shares issued and outstanding at December 31, 2015 = 2,000,000

Shares issued as a result of a 10% stock dividend on September 30, 2016 = 200,000

Calculating the weighted average number of common stocks:

Jan 1 2016 to Sept 30,2016:

First, note that there are 9 months between these two dates

So, the number of shares is calculated as: Common Shares * Duration (in years)

Number of Shares = 2,000,000 * 9/12

Number of Shares = 1,500,000

Jan 1 2016 to Sept 30,2016 - Adjusted

Given that there is a share issued as a result of 10% Stock dividend

Number of shares is calculated as 1,500,000 + the additional 10%

Number of Shares = 1,5000,000 + 10% * 1,500,000

Number of Shares = 1,500,000 + 150,000

Number of Shares = 1,650,000

Oct 1, 2016 to Dec 31, 2016

There are 3 months between these two dates

Common Shares between these dates = 2,000,000 + 200,000 --; This is gotten from outstanding shares of December 31, 2016 (2,000,000) and shares issued as a result of 10% Stock dividend (200,000)

Duration = 3/12 --- (by converting month to years)

So, Number of Shares = Common Shares * Duration

Number of Shares = 2,200,000 * 3/12

Number of Shares = 550,000

Total = 1,650,000 + 550,000

Total = 2,200,000 Shares

2.

Jan 1, 2017 to Mar 31, 2017

We'll still make use of the formula used in (1) above

Common Stocks * Duration (in years)

Between these dates, there are three months and common stock =2,200,000 --- as calculated in (1) above

So, Number of shares = 2,200,000*3/12 = 550,000

March 1,2017 to Dec31,2017

Given

Number of common shares issued and outstanding at December 31, 2017 = 4,200,000

Here, Common stocks = 4,200,000

Duration = 9/12

Number of Shares = 4,200,000*9/12 = 3,150,000

Total Number of Shares = 550,000 + 3*150,000 = 3,700,000

3.

Given

Weighted number of shares for 2017 = 3,700,000 --- calculated in (3) above

Weighted average number of shares = 2 * Weighted number of shares for 2017

Weighted average number of shares = 2 * 3,700,000

Weighted average number of shares = 7,400,000

4.

Jan 1, 2017 to Mar 31,2017.

Duration between these dates = 3/12 years

Number of common shares issued and outstanding at December 31, 2017 = 4,200,000

Number of Shares = 4200,000*3/12 = 1,050,000

April 1, 2017 to Dec 31, 2017

Duration = 9/12 years

Common Stocks = 4,200,000 * 2

Number of Shares = 4200,000*2*9/12 = 6,300,000

Total = 1,050,000 + 6,300,000 = 7,350,000

8 0
3 years ago
Match the following items.
Dovator [93]

Answer:3 is activities

1 is accomplishments

2 is credentails

itwas on my quiz

7 0
3 years ago
An economic model is useful only if it: ______________
finlep [7]

Answer:

b. contains no positive statements.

5 0
2 years ago
Producer surplus is:
Elena L [17]

Answer: Option (d) is correct.

Explanation:

Producer surplus is associated with the producer of a good. Graphically, producer surplus is the area between the upper portion of supply curve and equilibrium price level. Producer surplus is also defined as the difference between the price at which sellers are willing supply and the actual price they received.

Producers surplus = Price paid by buyers - Cost of production

4 0
2 years ago
Boeing has often cut its prices drastically to try to maintain its 60 percent of sales of commercial aircraft as it competes wit
bija089 [108]
A market share objective is the reason they encountered losses. Market share often pursues by companies when industry sales are relatively flat or declining. Although increased market share is a primary goal of some firms, others see it as a means to other ends: increasing sales and profits.



5 0
3 years ago
Other questions:
  • Prepare journal entries for each of the following
    7·1 answer
  • Which of the following statements is false regarding the risk assessment component of internal control? a. Risk assessment inclu
    9·1 answer
  • A put option with several months until expiration has a strike price of $55 when the stock price is $50. the option has _____ in
    13·1 answer
  • Laila created a new piece of workout gear. She's calling it the Toned Tushie. Although she couldn't initially find potential inv
    13·2 answers
  • Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Con
    14·1 answer
  • At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible A
    13·1 answer
  • As noted in the case, HP considered approaching chain stores that sell store-brand cartridges compatible with its printers and o
    5·1 answer
  • Responsible for the overall performance of an organization or one of its
    10·1 answer
  • Michelle has four credit cards with the balances and interest rates listed below. She would like to consolidate all of her credi
    8·1 answer
  • Suppose executives at an art museum know that 100 adults are willing to pay $12 for admission to the museum on a given weekday.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!