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
inna [77]
3 years ago
13

g The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoida

ble, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.
Business
1 answer:
KIM [24]3 years ago
7 0

Fruit Pie Inc. has three product lines—Strawberry, Cherry, and Apple. The following information is available:

                                         Strawberry     Cherry       Apple

Sales revenue                   $70,000​    $60,000​    $31,000​

Variable costs                    (20,000)     (15,000)     (11,000)

Contribution margin         $50,000​   $45,000​   $20,000

Fixed costs                        (20,000)       (5000)   (25,000)

Operating income (loss)  $30,000​  $40,000​      $(5000)

The company is deciding whether to drop product line Apple because it has an operating loss. Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.

Group of answer choices

$25,000

$65,000

$11,000

$20,000

Answer:

Fruit Pie Inc.

Assuming fixed costs are unavoidable, if Berry Pie Inc. drops product line Apple and rents the space formerly used to produce product Apple for $20,000 per year, total operating income will be ________.

= $65,000.

Explanation:

a) Data and Calculations:

                                        Strawberry     Cherry       Apple

Sales revenue                   $70,000​    $60,000​    $31,000​

Variable costs                    (20,000)     (15,000)     (11,000)

Contribution margin         $50,000​   $45,000​   $20,000

Fixed costs                        (20,000)       (5000)   (25,000)

Operating income (loss)  $30,000​  $40,000​      $(5000)

Income Statement after the Elimination of Apple:

                                        Strawberry     Cherry    Total

Sales revenue                   $70,000​    $60,000​  $130,000

Variable costs                    (20,000)     (15,000)    (35,000)

Contribution margin         $50,000​   $45,000​    $95,000

Fixed costs                        (20,000)       (5000)    (25,000)

Fixed costs (Apple's)                                             (25,000)

Rent income                                                           20,000

Operating income (loss)  $30,000​   $40,000​)  $65,000

You might be interested in
Given an activity in an advertising project whose planned cost was $12,000 but actual cost to date is $10,000 so far and the val
givi [52]

Answer:

Probably not

Explanation:

To me I think they planed to give the money to you guys for it try and put a little more in the project. The most important part is if the client is happy about the advertisement.

8 0
3 years ago
Which of the statements is the best
Galina-37 [17]

Answer:

Cash over flow ~AU ( ;

Explanation:

4 0
3 years ago
Sustainable development refers to A. placing restraints on a company's growth until all ancillary support services are in place
Semmy [17]

Answer:

The correct answer is letter "C": conducting business in a way that protects the natural environment while making economic progress.

Explanation:

Sustainable development is the capacity an institution has to satisfy individuals' needs without damaging the environment neither harming the atmosphere. To reach this stage there must be an equilibrium between the <em>economy, society, </em>and <em>the environment.</em> Sustainable development is difficult to be obtained with high poverty rates, habitats destruction, or indiscriminately resources exploitation.

4 0
3 years ago
DoorWay Computers, Inc., the trademark owner of "DoorWay," sought a court injunction to prevent Handyman Hardware, Inc. from usi
amid [387]

Answer:

False  

Explanation:

Because the injunction is the legal remedy that the special court's judge orders not the jury. The order enforce a party to do what must be done or refrains it from doing specific acts that harms the other party. So saying that Doorway sought the court injunction in which the jury decides the right course of action is incorrect because injunction is the warning of judge not of jury.

3 0
3 years ago
Select all that apply.
Oxana [17]
Probably “would you enjoy reading a fashion magazine”
5 0
2 years ago
Read 2 more answers
Other questions:
  • The Herman Company uses a joint process to produce products W, X, Y and Z. Each product may be sold at its split-off point or pr
    7·1 answer
  • In terms of delivering a presentation, explain how a slide presentation differs from a lecture?
    15·1 answer
  • In a given year, a consulting firm has the following costs: $600,000 in wages and salaries paid to employees; $73,000 in rental
    13·1 answer
  • The greatest cost of conflict is the lost opportunity to convert a conflict situation to a positive impact. Group of answer choi
    11·1 answer
  • Fancy Flowers has assets of $165,000 and liabilities of $113,000. What is the owner's equity?
    10·1 answer
  • Suppose there are only two goods in the world, x and y. Assume the consumer has spent all their money so they are on their budge
    11·1 answer
  • In a SWOT analysis, increasing gasoline prices would represent a potential __________ for manufacturers of electric cars.
    14·1 answer
  • When Moon Star Products Inc. planned to start its operations in United Cadvia, an emerging nation, it realized that it will have
    12·1 answer
  • 5. Elmofud, Inc. is considering splitting its stock. The stock is currently priced at $90 per share. You own 100 shares of the s
    7·1 answer
  • What are three advantages and three disadvantages of globalization
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!