Answer:
It will generate a financial disadvantage for 44,065 dollar to discontinued the cup division. This division generates a positive contribution which, if discontinued will not help to absorp the common fixed cost fo the firm and move the burden entirely to Bowls Plates division making the profit to decrease.
Explanation:
![\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$sales&105700&0&(105700)\\$variable cost&-61635&0&61635\\$contribution&44065&0&(44065)\\$fixed cost&-23465&-23465&0\\$Result&20600&-23465&(44065)\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24Continued%26%24Discontinued%26%24Differential%5C%5C%24sales%26105700%260%26%28105700%29%5C%5C%24variable%20cost%26-61635%260%2661635%5C%5C%24contribution%2644065%260%26%2844065%29%5C%5C%24fixed%20cost%26-23465%26-23465%260%5C%5C%24Result%2620600%26-23465%26%2844065%29%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Fixed cost:
42,300 x 15% + 42,800 x 40% = 23,465
Variable cost:
42,300 x (1 - 15%) + 42,800 x (1 - 40%) = 61,635
The differencial will be discontinued less continued column
If the result is positive there is a cost saving if discontinued
if negative there is a loss in contribution if discontinued
Answer: annual rate of return
Explanation:
The simple rate of return is also called the unadjusted rate of return or the accounting rate of return.
The simple rate of return is calculated when the incremental net operating income for the year is taken and then divided by the initial investment.
It should be noted that it's not called the annual rate of return.
Answer:
The amount of cash received is $2,910
Explanation:
Terms of 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As per given data
Sale = $4,600
Sales return = $1,600
Receivable = $4,600 - $1,600 = $3,000
As the payment is made within discount period, so discount will be availed on the amount due
Discount = $3,000 x 3% = $90
Payment by Customer = $3,000 - $90 = $2,910
Answer and Explanation:
The matching is as follows
1. In the absorption costing, the gross profit is on the income statement
2. The variable cost provided the useful report with respect for controlling cost
3. The fixed selling cost be the period cost in both the absorption & variable costing
4. In absorption costing, it required by GAAP
In this way it should be matched
hence, the same would be relevant and considered
