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
Firlakuza [10]
3 years ago
10

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

$6,000. The division sales for the year were $1,060,000 and the variable costs were $863,000. The fixed costs of the division were $203,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Business
1 answer:
Maslowich3 years ago
4 0

Answer:

loss of $137,000.

Explanation:

<u>Analysis of effects of eliminating business segment</u>

Income :

Savings - Variable Costs                                  $863,000

Savings - Fixed Cost ($203,000 x 30%)           $60,900

Total Income                                                     $923,900

Costs :

Lost Sales                                                      $1,060,000

Total Costs                                                     $1,060,000

Financial Advantage/ (Disadvantage)            ($137,000)

therefore,

The impact on operating income for eliminating this business segment would be: loss of $137,000.

You might be interested in
Weston Corporation just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow 9% a year for the
Butoxors [25]

Answer:

D1 = $4.085

D2 = $4.46

D3 = $4.86

D4 = $5.01

D5 = $5.16

Explanation:

As per the data given in the question,

DO = $3.75

Dividend expected to grow = 9%

Dividend grow later = 4%

D1 = DO(1+ Dividend1) = $3.75(1+9%)  

=$3.75(1.09)

=$4.085

D2 = DO(1+ Dividend1 )( 1 + Dividend2)

= $3.75(1+9%)(1+9%)

= $4.46

D3 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)

= $3.75(1+9%)(1+9%)(1+9%)

= $4.86

D4 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)

= $3.75(1+9%)(1+9%)(1+9%)(1+3%)

= $5.01

D5 = DO(1+Dividend1)(1+Dividend2)(1+Dividend3)(1+Dividend later)(1+Dividend later)

= $3.75(1+9%)(1+9%)(1+9%)(1+3%)(1+3%)

= $5.16

5 0
4 years ago
In a sales mix situation, at any level of units sold, net income will be higher if more fixed expenses are incurred. more higher
svet-max [94.6K]

Answer:

at any level of units sold, net income will be higher if more higher contribution margin units are sold than lower contribution margin units.

Explanation:

When products with high margins are sold, profit is made and net income becomes higher. For lower contribution margin units sold to make an impact on the net income, many more units must be sold. However, in cases where units with higher contribution margin are sold, net income is positively affected.

7 0
4 years ago
The Green Grape Company's Office Supplies account had a beginning balance of $12,000. During the month, purchases of office supp
ella [17]

Answer:

Dr Office supplies expense $15,000

Cr Office supplies $15,000

Explanation:

Given the above information, we can compute the proper adjusting entry as;

= ( Transfer $12,000 + $8,000 - $5,000)

= $15,000 from office supplies expense

Therefore, the proper adjusting entry is;

Dr Office supplies expense $15,000

Cr Office supply $15,000

7 0
4 years ago
Jason and Hernando both decided to invest in the same company. Jason expects to be paid back in full for his investment plus som
antoniya [11.8K]

Answer:

Jason investment - debt security

Hernando investment - equity security

Explanation:

By using the information, we get to know that Jason expected that full investment would be paid back along with some interest which means he is dealing in debt security which includes the loan plus interest part.  

Whereas, Hernando expected that dividend is received on that amount which he is invested which means that he is dealing in equity security.  

The equity security involves stock in equity security whereas loan or bond is a debt security

4 0
4 years ago
Which of the following is true about organizational culture? The strength of an organization's culture refers to how widely and
Komok [63]

Answer:

The strength of an organization's culture refers to how widely and deeply employees hold the company's dominant values and assumptions

Explanation:

The culture of an organization shows the working culture of the organization. It consists of duties, responsibilities, beliefs,values, ethics, policy, procedures that are to be followed by the all employees in the organization. There should be a good working culture so that everyone gots motivated so that they perform their task better  

Therefore according to the situation the option is A as it refers to the culture of the organization that understands that how broadly needs to understand the employees so that we can improve the profit of the organization by taking care of beliefs and values.

7 0
3 years ago
Other questions:
  • Rates that the world's largest banks charge one another for loans are called ________.
    9·1 answer
  • A good way of remembering your newest contact's name is to
    15·2 answers
  • Daily Enterprises is purchasing a $ 10.4 million machine. It will cost $ 55 comma 000 to transport and install the machine. The
    6·1 answer
  • Pattison Corporation is a service company that measures its output by the number of customers served. The company has provided t
    7·1 answer
  • Those assets that can’t be touched or seen but that have value are called
    10·1 answer
  • Goldtone is a multinational communications and information technology corporation. Its principal products are mobile telephones
    9·1 answer
  • A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lo
    14·1 answer
  • The targeted skill scope strategy
    8·2 answers
  • One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he received one dividend payment i
    9·1 answer
  • If your company’s product is mobile phones, do you think it would make better strategic sense to employ a multidomestic strategy
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!