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
vodomira [7]
3 years ago
13

XYZ Corporation produces and sells 10,000 units of Product X each month. The selling price is $40 per unit, and variable expense

s are $32 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $70,000 of the $120,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: Group of answer choices
Business
1 answer:
slava [35]3 years ago
3 0

Answer:

If the company discontinues Product X, income will decrease by $30,000.

Explanation:

Giving the following information:

Sales= 10,000*40= $400,000

Total variable expense= 32*10,000= 320,000

Avoidable fixed costs= $50,0000

<u>To calculate the effect on the income of discontinuing Product X, we need to use the following formula:</u>

Effect on income= avoidable fixed cost - total contribution margin

Effect on income= 50,000 - (400,000 - 320,000)

Effect on income= $30,000 decrease

If the company discontinues Product X, income will decrease by $30,000.

You might be interested in
Suppose you have 3 jars with the following contents. Jar 1 has 4 white balls and 1 black ball. Jar 2 has 2 white balls and 1 bla
serious [3.7K]

Answer:

4

Explanation:

There are 3 jars which equal 4 jars which equal 3

5 0
2 years ago
JG Asset Services is recommending that you invest $1,500 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compou
skelet666 [1.2K]

Answer:

So after 5 year total amount will be $1781.529

So option (a) is correct option

Explanation:

We have given that JG Asset is recommending that you invest $1500 for 5 years at rate of 3.5%

So principle amount P = $1500

Rate of interest r = 3.5 %

Time n = 5 years

We know that when total amount is given by

A=P(1+\frac{5.5}{100})^n, here r is rate of interest and n is time period

So amount after 5 years will be

A=1500(1+\frac{3.5}{100})^5=$1781.52

So after 5 year total amount will be $1781.529

So option (a) is correct option

5 0
3 years ago
A Company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Sec
gogolik [260]

Answer: $65

Explanation: Under the FIFO method, that is, first in first out method inventory is recorded on the assumption that the goods that were purchased first will also be sold first and the remaining inventory will have the latest purchased units.

So, in the given question the two units sold would be costing $80 and $95

Hence,

Gross profit = $240 - ($80 + $95)

                    = $65

3 0
2 years ago
If an account has a credit balance it means​
Brums [2.3K]

Answer:

If the total of your credits exceeds the amount you owe, your statement shows a credit balance. This is money the card issuer owes you. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance.

Explanation:

Hope this help!!

6 0
2 years ago
Toyota has been working alongside us for years, but we just heard the bad news: they’re not renewing our electric vehicle (EV) c
klemol [59]

Answer:

The right approach is Option a (Bargaining power of suppliers).

Explanation:

  • The concept is such an industry influences the buyer's business climate and determines the potential including its buyer to attain profitability.
  • The meaning is basically how very much jurisdiction a single provider has. By supplier, I represent the industries that create the manufactured goods that even the sellers refine into the finished product to something like the sellers throughout the business. If there are several suppliers during the sector because each supplier is indeed very poor.

8 0
3 years ago
Other questions:
  • g Peng Company is considering an investment expected to generate an average net income after taxes of $2,700 for three years. Th
    11·1 answer
  • Assume a U.S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate o
    13·1 answer
  • Other things the same, if prices fell when firms and workers were expecting them to rise, then a. employment and production woul
    5·1 answer
  • An esop: allows an owner to transfer all or part of his company to the employees as gradually or as quickly as he chooses. works
    6·1 answer
  • Which of the following determines the process that a company will use to create its product? Group of answer choices a firm's mu
    13·1 answer
  • The basic difference between a master budget and a flexible budget is that a: Group of answer choices flexible budget considers
    13·1 answer
  • Solve 2x + 0.03x = 255​
    7·1 answer
  • Retained earnings:40)A)Generally consists of a company's cumulative net income less any net losses and dividends declared since
    8·1 answer
  • Fogelberg Company purchased equipment for $30,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charg
    8·1 answer
  • Determine the price in period 1 (the future) if 30 units of oil are consumed in period 0 (the present).
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!