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Digiron [165]
3 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]3 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

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The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. Suppose
Lena [83]

Answer:

(B) $38,446,000

Explanation:

Assuming a linear depreciation model, depreciation will occur at the same rate each year. Since the total after 15 years is 90% of the original value, the percentage depreciated per year is given by:

P= \frac{90\%}{15} \\P=6\%

The book value (V) of this purchase after the first year will be:

V=\$40,900,000*(1-0.06)\\V=\$38,446,000

Therefore, the answer is (B) $38,446,000

3 0
3 years ago
What do you think about the 7dream concept for seven- eleven japan? from a supply chain perspective, is it likely to be more suc
VashaNatasha [74]
The Seven Dream concept of the Seven Eleven convenience store is a good supply chain concept that targets e-commerce customer. While most of the e-commerce portal are successful these days, 7 Dream comes as an unique inception. This allows customer to order via online and collect from the store deliveries at their convenience as well. The concept is seem to be more preferred in Japan, where customers have preference towards store delivery of the shipped goods. In fact, the 7- eleven in Japan is more successful than any other countries where the franchise has its stores open.

From the supply chain perspective, I think 7dream concept will be more successful in Japan than in USA. The reason being the urban customer of Japanese market and convenient access  for them to store and pick up. For place like USA, where population is sparsely distributed to large area, this supply chain concept will not be very effective. For Suburban population, this model will be very inconvenience as they have to drive a long way to store to collect their deliveries, which they could have easily got home delivered via other such services. 

6 0
3 years ago
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
8090 [49]

Answer:

a) 100 units

b) 2.5 order per year

c) 50 units

Explanation:

Given data:

demand 250 units

order cost is $20

holding cost $1

a) Economic order quantity EOQ = \sqrt{\frac{2\times demand \times order\ cost}{holding \ cost}}

EOQ = \sqrt{\fac{2\times 250 \times 20}{1}} =100 units

b) number of order for each year = \frac{annual/ demand}{EOQ}

                                                    = \frac{250}{100} = 2.5order/ year

c) average inventory = \frac{Q}{2} = \frac{100}{2} =  50 units

3 0
3 years ago
What is profit or loss revaluation?​
sweet [91]

Revaluation is used to adjust the book value of a fixed asset to its current market value. ... If a revaluation results in a decrease in the carrying amount of a fixed asset, recognize the decrease in profit or loss

4 0
3 years ago
Read 2 more answers
Unified Modeling Language (UML) Class diagrams describe the logical structure of a database system. True or False True False
Mashcka [7]

Answer:

True

Explanation:

The work of software developers is quite tough and confusing that is why the system of language was created to help them in their work. The system of language is known as a unified modelling language, it uses various diagrams to help them in solving various complex problems. This language provides a standard way to visualise the concepts that is why it is a logical structure of a database system.

8 0
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