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
GarryVolchara [31]
3 years ago
15

McCarthy Industries has two sales territories-East and West. Financial information for the two territories is presented below: E

ast West Sales $980,000 $750,000 Direct costs: Variable (343,000) (225,000) Fixed (450,000) (325,000) Allocated common costs (275,000) (175,000) Net income (loss) $(88,000) $25,000 Because the company is in a start-up stage, corporate management feels that the East sales territory is creating too much of a cash drain on the company and it should be eliminated. If the East territory is discontinued, one sales manager (whose salary is $40,000 per year) will be relocated to the West territory. By how much would McCarthy's income change if the East territory is eliminated
Business
1 answer:
kirill [66]3 years ago
3 0

Answer:

Decrease in income by $227,000

Explanation:

The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;

= -Sales + Direct cost + fixed cost - salary per year

= -$980,000 + $343,000 + ($450,000 - $40,000)

= -$980,000 + $343,000 + $410,000

= -$227,000

Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000

Decrease in income by $227,000

You might be interested in
A manager who focuses on one part of the organization, such as production, without considering the impact on marketing or sales
oee [108]

Answer:

The manager does not understand the contingency view.

Explanation:

The manager who focuses only on one part of the business then will not understand the contingency view. Here, the contingency view refers to the behavior of the manager to lead every situation or problem in the company. Therefore, to make a decision it is required to focus on all parts of the organization. Since in the question it is given that the manager focus only on one part of the company that means he will be unable to understand every situation of the company.

3 0
3 years ago
What is the idea behind “cutting taxes” (lowering taxes). select one:
earnstyle [38]
The correct option is A. The effect of tax cut is reduction in the amount of money that the government is generating and increase in the amount of money available to those whose taxes are reduced. Government usually cut taxes in order to boost the economy through increased spending. 
8 0
3 years ago
The project will require an initial investment of $20,000, but the project will also be using a company-owned truck that is not
Alla [95]

Answer:

c. Increase the amount of the initial investment by $12,000.

Explanation:

The amount of investment has to be increased by $12,000 because the truck constitutes an investment into the project and this should be accounted for

3 0
3 years ago
Carol takes out an insurance policy on her car. Carol can assign her policy to a third party
notka56 [123]
What is the question here? 
4 0
3 years ago
Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan d
shtirl [24]

Answer: A ballon note

Explanation: A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate.A balloon loan is a loan that you pay off with a single, final payment. Instead of a fixed monthly payment that gradually eliminates your debt, you typically make relatively small monthly payments. But those payments are not sufficient to pay off the loan before it comes due. As a result, you need to make a final “balloon” payment to pay off the remaining loan balance, and that payment may be significant.

7 0
3 years ago
Other questions:
  • In the context of foreign market entry, ________ requires no equity investment and thus has a low risk, low rate of return, and
    14·2 answers
  • The Hudson Corporation has 7,600 obsolete units of a product that are carried in inventory at a manufacturing cost of $152,000.
    15·1 answer
  • Group Working age population Discouraged workers Employed Unemployed # in Millions 215 5 138 According to the table, the labor f
    7·1 answer
  • A company has large number of employees who have various roles and responsibilities. many times the company has encountered situ
    5·1 answer
  • The primary purpose of _________ behaviors is to enhance employees’ skills and to create positive work relationships among cowor
    14·1 answer
  • Many firms choose not to implement operational components of ERP software and instead elect to create their own propriety soluti
    5·1 answer
  • As new firms enter a competitive price-searcher market, profits of existing firms Group of answer choices rise and product diver
    7·1 answer
  • 9. Search costs are
    9·1 answer
  • Gabrielle does not want to work a nine-to-five job. Still, she has to work to support herself. She accepts a job as a restaurant
    10·2 answers
  • On june 1, 2022, spk company signed a $100,000, one-year, 6 percent note payable. Interest and principal are due at maturity. Wh
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!