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uysha [10]
3 years ago
6

The Northern Division of Southwest Clothing Inc. forecasts (has budgeted) the following income statement for the upcoming year:

Sales $850,000 Variable Costs (520,000) Contribution Margin 330,000 Fixed Costs (480,000) Operating loss ($150,000) Unfortunately, every other division in the company is also expecting an operating loss for the coming year. The company's management is considering shutting down the Northern Division and has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens. If the Northern Division is shutdown, what is the change (impact) in Southwest's forecast operating results
Business
1 answer:
Alex3 years ago
5 0

Answer:

Operating loss will decrease by $20,000

Explanation:

Operating loss from normal business activities and if the division is not shut down = $150,000.

Operating loss if division is shut down by the management = $130,000 ($480,000 - $350,000) because the management has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens.

So, if the Northern Division is shutdown, the Operating loss will decrease by $20,000 (From $150,000 to $130,000)

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A common-sized income statement, each item is expressed as a percentage of net income. true false
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In a common-sized income statement, each item is expressed as a percentage of net income. TRUE

Commonplace-size earnings statement is the vertical evaluation of the income statement. A vertical analysis indicates all gadgets as chances and now not in absolute figures which affords a higher assessment. each line object is expressed as a percent determined by the base parent within the declaration.

A not unusual length earnings statement is an earnings declaration wherein each line item is expressed as a percent of the price of revenue or income. it's far used for vertical analysis, in which each line object in a monetary assertion is represented as a percentage of a base figure inside the assertion.

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2 years ago
What is the distinction between free trade and fair trade?
sergey [27]

Answer:

Free trade focuses on the reductions of barriers and policies of nations.

Fair trade seeks to bring favor to the right of the worker.

Explanation:

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3 years ago
Who's copping the candy axe?
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3 years ago
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Which situation would allow a country to increase the goods it imports despite spending the same amount of money?
Nataly [62]

A situation that would allow a country to import more goods for the same amount of money is A. The exchange rate for the country's currency increased.

<h3>What happens when exchange rates increase?</h3>

When a nation's exchange rate increases, it means the country's currency is now stronger and can buy more goods.

This means that the country will be able to import more goods for the same amount of money because that amount of money is now more valuable.

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3 0
2 years ago
At the high level of activity in November, 12000 machine hours were run and power costs were $20000. In April, a month of low ac
Salsk061 [2.6K]

Answer:

$6,500

Explanation:

For computing the estimated fixed cost, we have to determine the variable cost per hour which is shown below:

Variable cost per hour = (High power cost - low power cost) ÷ (High machine hours - low machine hours)

= ($20,000 - $11,000) ÷ (12,000 hours - 4,000 hours)

= $9,000 ÷ 8,000 hours

= $1.125

Now the fixed cost equal to

= High power cost - (High machine hours × Variable cost per hour)

= $20,000 - (12,000 hours × $1.125)

= $20,000 - $13,500

= $6,500

4 0
3 years ago
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