Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400.
1 answer:
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Answer: The answer is provided below
Explanation:
A. A brokerage company such as Schwab will define the "Investor Services" and the "Institutional Services" segments like this:
Investor services- This will be:
• Real brokerage and also banking services to the individual investors.
• Other retirement plan to the corporations.
Institutional services- This will be:
• Marketing support to the independent investment advisors.
• Trading tools to the independent investment advisors.
B. The variable costs in the "Investor Services" segment will include:
• Fees paid to exchanges for executing trades
• Transaction fees incurred by Schwab mutual funds to buy and sell shares
• Commissions to brokers.
The fixed costs in the "Investor Services" segment will include:
• Depreciation on brokerage offices.
• Depreciation on the brokerage office equipment, like computers and computer networks.
The explanation for C and D has been attached. For D, the operating income would decline by $577 million.
