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ivanzaharov [21]
3 years ago
8

The operations of Knickers Corporation are divided into the Pacers division and the Bulls division. Projections for the next yea

r are as follows: Pacers Bulls Division Division Total Sales revenue $420,000 $252,000 $672,000 Variable expenses 147,000 115,500 262,500 Contribution margin $273,000 $136,500 $409,500 Direct fixed expenses 126,000 105,000 231,000 Segment margin $147,000 $ 31,500 $178,500 Allocated common costs 63,000 47,250 110,250 Total relevant benefit (loss) $ 84,000 $(15,750) $ 68,250 Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be: a.$84,000. b.$99,750. c.$36,750. d.$68,250.
Business
1 answer:
Dominik [7]3 years ago
4 0

Answer:

c.$36,750

Explanation:

If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:

Operating income = Segment margin - Total cost

                               = $147,000 - $110,250

                               = $36,750

Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.

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Answer

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Step-by-step explanation:

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3 years ago
Sheela Dairy Corporation buys unprocessed cows' milk from local farmers. At the dairy, this unprocessed milk is broken down into
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Answer:

The answer is D) None of these statement is relevant in the decision to further process the cream into butter.

Explanation:

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2 years ago
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5 0
2 years ago
Which of the following sectors should be restructured?
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I really don’t know
6 0
3 years ago
At the beginning of 20x1, Sun Angel Corporation began offering a two-year warranty on its products. The warranty program was exp
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Answer:

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6 0
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