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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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Company J must choose between two alternate business expenditures. Expenditure 1 would require a $80,000 cash outlay and Expendi
Tanya [424]

Answer:

A. 25%

B. 50%

C. 48000 after tax cash flow

Explanation:

a. lets assume marginal tax rate is X%

After tax cash flow of 80000 should equal to 60000$

$80000 - [$80000*X%] = 60000$

80000*X% = 80000-60000

80000*X% =20000

X = 20000/80000

= 25%

b.

$80000 - [$80000*50%*x%] = 60000$

40000*x%=20000

x%=50%

c.

$80000- [$80000*x] = 60000 - [60000*50%*x]

80000-60000 = [80000*x] - [30000*x]

20000 = 50000x

x=40%

check

80000-40% =48000 after tax cash flow

60000*50%

=60000- [60000*50%*40%]

=48000 after tax cash flow

6 0
3 years ago
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snow_lady [41]
Range would be the check that is used to restrict the fines for speeding violations from $50-$250
8 0
3 years ago
Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year
nekit [7.7K]

Answer:

Profit margin = 9.74%

Explanation:

We know,

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Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.

Given,

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Therefore,

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Profit Margin = 9.74%

Hence, company is performing financially well.

4 0
3 years ago
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Answer:

Customer orientation

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Customer orientation is described as a strategy to revenues and customer relationships in which employees focus on developing customers encounter their brief-term needs and desires. Here, management and staff align their physical and technical goals with customer satisfaction and retention.

Customer orientation is crucial to the gratification of a customer. Analysis into customer needs and satisfaction can improve your organization's customer orientation.

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Virty [35]

Answer:

Commercial bank.

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3 years ago
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