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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.

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John has $ 1.35 $1.35 in nickels and dimes in his pocket. He has six more nickels than he does dimes. How many of each does he h
Eduardwww [97]

Answer:

John has 7 dimes and 13 nickels

Explanation:

let N = nickels

let D = dimes

5N + 10D = 135

N = D + 6

5(D + 6) +10D = 135

5D + 30 + 10D = 135

15D = 135 - 30 = 105

D = 105 / 15 = 7

N = D + 6 = 7 + 6 = 13

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