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adelina 88 [10]
3 years ago
9

is considering permanently shiutting down a department that has an annual contribution margin of $25,000 and $75,000 in annual f

ixed costs. Of the fixed costs, $19,500 cannot be avoided. What would the annual financial advantage (disadvantage) for corp. if the company shuts down the department
Business
1 answer:
Sergeu [11.5K]3 years ago
5 0

Answer:

Avoidable fixed costs = $75,000 - $19,500 = $55,500

Segment margin = Contribution margin - Avoidable fixed costs

Segment margin = $25,000 - $55,500

Segment margin = -$30,500

If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500

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Opportunity cost is defined as A. the monetary expense associated with an activity. B. the highest valued alternative that must
Ratling [72]

Answer:

B. the highest valued alternative that must be given up to engage in an activity.

Explanation:

Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

Eg1: If I like Chapati more than rice & rice more than curd, the opportunity cost of consuming chapati is the next best option i.e rice.

Eg2 : Working as school teacher with salary 20000, next best option salary as coaching tutor i.e 10000 is the Opportunity Cost

A is inapt : Opportunity cost can be monetary or non monetary. Eg2 has monetary opportunity cost. But, Eg 1 has opportunity cost in terms of rice' (sacrifised) satisfaction.

C is inapt : Opportunity cost is only the cost of next best alternative & not all alternatives. Eg1 - Curd i.e 3rd best option after chapati, is not the opportunity cost after chapati.

4 0
3 years ago
An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic
Roman55 [17]

Answer: born global

Explanation:

An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic market can be said to be born global.

Since the day such organization is established, they seek to gain competitive advantage over their rivals by using latest technologies and selling their products in different countries.

7 0
2 years ago
Nadira stood outside the mall and asked people which stores they visited and if they bought anything. If they said yes, she aske
AlexFokin [52]

Answer: In-depth interview.

Explanation:

Nadira engaged the buyers at the mall in in-depth interview to gather information on the buyers behavior. An in-depth interview is a form of information gathering that involves, a one-on-one interaction between two people, where one person ask some set of questions and the other person offers sincere answers to questions asked.

8 0
2 years ago
preparing adjusting and closing entries across two periods norton company closes its accounts on december 31 each year. the comp
Rama09 [41]

Answer:

Requirement: <em>Prepare journal entries to: (a) Accrue the salaries payable on December 31, b) Close the Salaries Expense account on December 31 (the account has a year-end balance of $250,000 after adjustments), (c) Record the salary payment on January 7</em>

Date     Accounts title and Explanation      Debit          Credit

31-Dec  Salaries expense                             $1,880

                   Salaries Payable                                             $1,880

             (To record accrued salaries )  

31-Dec   Retained Earnings                          $250,000  

                     Salaries Expense                                          $250000

              (To close salaries expense account)

07-Jan   Salaries Payable                             $1,880

              Salaries expense                            $2,920

                     Cash                                                                $4,800

              (To record payment of salary)

3 0
3 years ago
Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The com
Katyanochek1 [597]

Answer:

$112,000

Explanation:

The computation of using activity based costing for overhead costs to activity cost pools is below:-

Factory utilities for processing

= $99,000 × 0.30

= $29,700

Factory utilities for Setting up

= $99,000 × 0.50

= $49,500

Factory utilities for others

= $99,000 × 0.20

= $19,800

Total = $99,000

Indirect Labor for processing

= $13,000 × 0.20

= $2,600

Indirect labor for setting up

= $13,000 × 0.30

= $3,900

Indirect labor for others

= $13,000 × 0.50

= $6,500

Total = $13,000

Overhead costs = $99,000 + $13,000

= $112,000

3 0
3 years ago
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