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
sergey [27]
3 years ago
5

Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Windsor Ridge Total Sales

$ 360,200 $ 320,100 $ 680,300 Variable Costs 280,200 150,200 $ 430,400 Contribution Margin $ 80,000 $ 169,900 $ 249,900 Fixed Costs (allocated) 121,700 128,200 $ 249,900 Profit Margin $ (41,700 ) $ 41,700 $ 0 What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable?.
Business
1 answer:
Morgarella [4.7K]3 years ago
8 0

Answer:

- $ 80,000

Explanation:

The existing Power's profit margin is $0 ($41,700 - $41,700 + $0).

<u>Dropping Windsor division has the following effect :</u>

Increase in cost - opportunity cost of $ 80,000

<em>The opportunity is due to lost contribution </em>

Fixed costs are unavoidable thus, they are irrelevant when doing this calculation.

thus,

Power's profit margin will be - $ 80,000 if the Windsor division was dropped.

You might be interested in
The concept of materiality:
ryzh [129]

Answer:

The correct answer is letter "C": Justifies ignoring the matching principle or the realization principle in certain circumstances.

Explanation:

The materiality accounting principle states that some of the Generally Accepted Accounting Principles can be omitted in the entry of an item while record-keeping a company's transactions only in the case the entry does not have any influence on the Financial Statements. Those principles could imply matching or realization principles.

6 0
4 years ago
Cost-push inflation occurs when:
marysya [2.9K]
Short answer D
Labor costs could cause that type of inflation as well.

C is eliminated because Push Cost Inflation is cost increase in what it takes to make a product.

B is gone because it is really deflation not inflation. This answer implies a drop in price. Inflation is an increase in price.

A subsides are an increase in capital. That will lower the price or keep it stable. Not A
4 0
3 years ago
How do political factors affect businesses
allsm [11]

Answer:

Change in the political factors can affect business strategy because of the following reasons: The stability of a political system can affect the appeal of a particular local market. Governments view business organizations as a critical vehicle for social reform. ... Government actions influence the economic environment.

Explanation:

4 0
3 years ago
Suppose that in your first year of college you spend $31,300.00 more than you eam. In your second year, your expenses increase a
ryzh [129]

Answer: See explanation

Explanation:

Based on the information provided in the question, the deficit in the 3rd year of college will be: = $32,150

The total debt that one owes in the 3rf year will then be the addition of the debts from the 1st to the 3rd year and this will be:

= $31,300 + $31,900 + $32,150

= $63,232

5 0
3 years ago
Read 2 more answers
Assume the union freeman works with pays newer employees less than ones who have been with the organization for a longer time. w
Monica [59]

Assume the union freeman works with pays newer employees less than ones who have been with the organization for a longer time. The basis for this is: two tier contract.

<h3>What is two tier contract?</h3>

Two tier contract can be defined as the way in which employee who work in an organization does not earn the same wages as some employee earn higher wages that others while some earn lesser wages.

Hence, if  newer employees earn lesser  than those who have been with the organization for a longer time. The basis for this is called  two tier contract.

Learn more about Two tier contract here:brainly.com/question/984979

#SPJ1

4 0
2 years ago
Other questions:
  • Which of the following is the objective of life insurance?
    14·1 answer
  • You are installing a new computer system with
    12·1 answer
  • When managers at a large pharmaceutical company look towards the future and think about what could be, they are likely using whi
    9·1 answer
  • If you want to be able to withdraw $100,000 per year forever beginning 20 years from now, how much will you have to have in your
    14·1 answer
  • Despite its high reach, ______ typically provides the least depth of news coverage.
    11·1 answer
  • Neptune LLC is a company that manufactures electronic products. Its employees are given specific guidelines regarding the resour
    10·1 answer
  • An agent's client calls on Monday to discuss the current market situation. They discuss how 100 shares of KAPCO common stock wou
    9·1 answer
  • In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundr
    10·1 answer
  • Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Info
    10·1 answer
  • An increase in the expected inflation rate, other things remaining the same?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!