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murzikaleks [220]
3 years ago
14

Abba, Inc. is considering dropping a product line. During the prior year, the line had sales of $207,000 and a contribution marg

in of $124,000. Fixed expenses consist of: Salaries $60,000 Rent 50,000 Advertising 20,000 Administrative 35,000 Total fixed expenses $165,000 The product line manager's $60,000 salary is avoidable as is the $20,000 of advertising. Of the administrative expenses, $10,000 is avoidable. The rest are general allocated expenses that will not change if the product is dropped. The rent expense is allocated to product lines based on sales and represents a share of the total cost for the building. If this product line is dropped overall net operating income will:
Business
1 answer:
damaskus [11]3 years ago
8 0

Answer:

Overall net income will decrease by $34,000.

Explanation:

Calculation to determine net operating income

Using this formula formula

Net operating income=Contribution margin -Avoidable costs

Where,

Contribution margin =$124,000

Avoidable costs= Salaries $60,000

+Advertising $20,000+Administrative expenses $10,000

Let plug in the formula

Net operating income=$124,000-($60,000+$20,000+$10,000)

Net operating income=$124,000-$90,000

Net operating income=$34,000 Decrease

Therefore If this product line is dropped overall net operating income will:decrease by $34,000

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_____ refers to what sets an organization apart from others and provides it with a distinctive edge for meeting customer or clie
attashe74 [19]

Answer: (C) Competitive advantage

Explanation:

 The competitive advantage is the term that refers to the condition of an organization for producing the various types of products and the services at some reasonable price that helps in generating the more number of sales.

The importance of the competitive advantage is that it helps in providing the distinctive edge for fulfill the requirement of the consumer and as well as client in the market.  

 Therefore, Option (C) is correct answer.

 

7 0
3 years ago
Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. Debit Credit Accounts rece
goblinko [34]

Answer:

TOTAL ASSETS  $2,303,000

Explanation:

Some

Symphony Balance Sheet

$39,000  Cash

$710,000 Accounts Receivable

$20,000  Prepaid Rent

$30,000  Interest Receivable

$8,000    Supplies

$16,000   Inventory

$823,000  TOTAL CURRENT ASSETS  

$920,000 Building and Equipment

-$80,000 Accum Depreciation

$40,000  Trademark

$450,000 Notes Receivable

$150,000 Land

$1480,000  TOTAL NONCURRENT ASSETS  

$2303,000  TOTAL ASSETS  

$560,000  Accounts Payable  

$30,000  Cash Dividend Payable

$40,000   Deferred Revenue  

$65,000  Income Tax Payable

$695,000 TOTAL CURRENT LIABILITIES  

$800,000  Notes Payable  

$800,000  TOTAL NONCURRENT LIABILITIES  

$1495,000  TOTAL LIABILITIES  

$485,000  Additional Paid in Capital  

$15,000    Common Stock  

$308,000  Retained Earnings  

$808,000  TOTAL EQUITY  

$2303,000  TOTAL EQUITY + LIABILITIES  

Some reclassification are needed to do before report the total Assets

Allowance for uncollectible accounts are deduct of the total amount of accounts receivables

Petty Cash Fund is the same as Cash with the difference that this funds have an specific use as minor expenditures.

Account of Current Assets , the criteria is to have a liquidity speed less of one year

Cash and Petty Cash Fund

Accounts Receivable less Allowance for uncollectible accounts

Prepaid Rent

Interest Receivable

Supplies

Inventory

Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Building and Equipment

Accum Depreciation

Trademark

Notes Receivable

Land

Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Accounts Payable  

Cash Dividend Payable

Deferred Revenue  

Income Tax Payable

Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing

Notes Payable  

Account of Total Equity

Additional Paid in Capital  

Common Stock  

Retained Earnings  

7 0
3 years ago
What answer describes the Nigerian scam
Ann [662]
Well the Nigerian scam is a bunch of scams the most used one is the one that he's a Nigerian price and to send him 100000$ and he will make you rich hope this helps
8 0
3 years ago
Assume a company's Income Statement for Year 12 is as follows:_______.
MrRa [10]

Based on the above income statement data and the formula for calculating the interest coverage ratio, the company's interest coverage ratio is <u>e. 5.00.</u>

<h3>What is the interest coverage ratio?</h3>

The interest coverage ratio measures how easily a company can pay interest on its outstanding debt using its operating profit.  The operating profit is the earnings before interest expenses and taxes (EBIT).

<h3>Data and Calculations:</h3>

Operating profit = $60,000

Interest Expense = $12,000

Interest coverage ratio = Earnings before interest and taxes/Interest expense = 5 ($60,000/$12,000)

Thus, the company's interest coverage ratio is <u>e. 5.00.</u>

<u></u>

Learn more about interest coverage ratio at brainly.com/question/26092288

8 0
2 years ago
Points, Yum...much yum.
netineya [11]

Answer:

yes yes

Explanation:

yumyumyumyumuum

6 0
2 years ago
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