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BabaBlast [244]
2 years ago
15

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

:
Total Luxury Sporty
Sales revenue $510,000 $380,000 $130.000
Variable expenses 365.000 245,000 120.000
Contribution margin 145.000 135,000 10.000
Fixed expenses 80 000 40,000 40,000
Operating income (loss) $65.000 $95.000 $(130,000)
Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected?
A. Increase $257,500.
B. Increase $337,500.
C. Increase $192,500.
D. Decrease $192,500.
J&A Corporation has a monthly target operating income of $35,700. Variable expenses are 30% of sales and monthly fixed expenses are $13,300. What is the monthly margin of safety as a percentage of target sales in dollars?
A. 26.84%.
B. 72.86%.
C. 13.73%.
D. 70%.
Business
1 answer:
liubo4ka [24]2 years ago
5 0

Answer:

A. Operating income will increase by $257,500

Explanation:

Given the following,

Sales revenue

Total  = $130,000

Luxury = $510,000

Sporty = $380,000

Variable expense

Total = $120,000

Luxury = $365,000

Sporty = $245,000

Contribution margin

Total = $10,000

Luxury = $145,000

Sporty = $135,000

New income statement

Sales  

$510,000

Less : Variable costs

($365,000)

Contribution margin

$145,000

Fixed cost

($40,000 + $40,000)

($80,000)

Operating income

$65,000

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Answer:

A key reason for Bretton Woods' collapse was the inflationary monetary policy that was inappropriate for the key currency country of the system.

Explanation:

The US decision to suspend gold convertibility ended a key aspect of the Bretton Woods system. The remaining part of the System, the adjustable peg disappeared by March 1973.

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2 years ago
While building the ancient pyramids, the Egyptians performed several management functions. They submitted written requests and c
geniusboy [140]

Answer:

a, b and c i.e Organizing, Planning and Controlling

Explanation:

Note: <u>Since more than one option is to be selected, the three terms have been provided as an answer</u>

Organizing is the management function concerned with creation of organizational hierarchy, defining roles and objectives and authority and reporting responsibilities.

Planning refers to providing for unforeseen future events and deciding the ways to deal with them.

Directing refers to the management function of guiding, supervising and leading people with an objective to meet organizational goals and extract efficient performance.

In the given case, written request signifies planning, creation of a staff and consulting before arriving at decisions refers to organizing and controlling function.

4 0
3 years ago
Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs includ
Zolol [24]

Answer:

$152.4 million

Explanation:

The computation of the projected net income is shown below:

As we know that

Net income = (EBIT - interest) × (1 - tax rate)

where,

EBIT = Sales - operating cost

= $700 × 120% - ($700 × 120% × 65%)

= $840 - ($840 × 65%)

= $840 - $546

= $294

The interest expense and tax rate is $40 and 40%

So, the projected net income is

= ($294 - $40) × (1 - 40%)

= $152.4 million

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7 0
3 years ago
According to mesmer-magnus and viswesvaran, organizational employees have three options to address an unsatisfactory situation f
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According to Mesmer-Magnus and Viswesvaran, organizational employees have three options to address an unsatisfactory situation faced within an organization. These include: exiting the organization, remaining silent, voice discontent.

<h3>What are organizational employees?</h3>

They are the ones who effectively contribute to an organization's smooth operation. They work really hard to deliver what they promise and complete the specified tasks by the deadline. The culture of the workplace is significantly influenced by the personnel.

Through negotiation techniques, organizational members develop their identities as runners. Members take up the role of models for new members in a continuing identity. Running as a societal norm might be supported by an organization.

The foundation of a solid, long-lasting corporation is its workforce. No matter what level, employees are in charge of the company. This means that their fortitude, fidelity, and devotion, as well as their emotional ties to the company, cannot be valued as assets.

Mesmer-Magnus and Viswesvaran assert that there are three ways for organizational personnel to deal with problematic circumstances they encounter. These include leaving the company, keeping quiet, and voicing your dissatisfaction.

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7 0
1 year ago
Which of the following statements is false about the order in which management determines the sequencing of support department a
GaryK [48]

Answer: A. Departments with more employees are allocated earlier.

Explanation:

In the sequential method, it should be noted that a company allocates the service costs one department at a time. Once the service department cost is allocated by the accountants, the department won't get any other costs from the other service departments.

The statement that is false about the order in which management determines the sequencing of support department allocations under the sequential method of allocating support department costs to production departments is that the departments with more employees are allocated earlier.

Under the sequential method, the department costs that are allocated earlier include having an accurate cost drivers, having a higher cost, or having a large number of support.

4 0
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