All categories

3 years ago

Pacific Division has the following information:

Business

1 answer:

Luden [163]3 years ago

5 0

Answer:

it will be a net loss of 560,000

It is better to produce at a loss of 60,000 than a loss of 620,000

That's because, the Division cover a good portion of their allocate fixed cost.

Explanation:

The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.

The sales and variable cost will be zero.

$\left[\begin{array}{cccc}&Continued&Discontinued&Differential\\Sales&1,200,000&0&-1,200,000\\Variable&-640,000&0&640,000\\Allocate cost&-620,000&-620,000&0\\Result&-60,000&-620,000&-560,000\\\end{array}\right]$

After posting the values, we calculate the differential income.

In this case it will be a loss for 560,000

You might be interested in

An example of market power

Soloha48 [4]

A monopoly is the best example of a company with substantial market power

7 0

3 years ago

Read 2 more answers

If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the _______.

joja [24]

When the court renders an opinion, the Chief Justice- when in the majority-decides who writes the courts' opinion. So the answer is C

7 0

3 years ago

Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In o

Zigmanuir [339]

Answer:

The scientist are looking to offer shares of stock to general public to raise some funds.

Explanation:

The seed scientist are looking to offer shares of stock of their company to genera public to raise some funds , so that they can expand the distribution of their product . Arborview plant science company will first time offer their shares to the public, so this process is called initial public offering and by doing this they will get funds from investor in return for part of ownership in the company.

3 0

3 years ago

It is rumored that the Illinois Operations Manager, Sam, has requested the quarterly budget to include an available position for

vovangra [49]

Answer:

The correct answer is letter "B": Convene a meeting and ask Sam to substantiate the need for a new team leader. Review the ethics policy and company hiring guidelines. Express your concerns about the budget.

Explanation:

First of all, the company must confirm if there is really a need for a team leader in the assembly area. If so, the benefits of having such a professional must be pointed out. If approved, because of the rumors of Sam hiring a friend for the position, the ethics policy and company hiring guidelines must be clarified in order to let Sam know that the new leader must be selected after the evaluation of a number of applicants who can could suitable for the position. Last but not least, the details of the reasonable income this new leader will receive should be explained to find out what would be the impact on the company's budget.

7 0

3 years ago

Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Depo

Alja [10]

Answer:

What is the Value of Bank Deposits?

bank deposits = bank reserves / required reserve ratio = $200 / 20% = $1,000

What is the Money Supply?

money supply = bank deposits + currency held by the public = $1,000 + $1,00 = $2,000

Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase?

if the FED sells $50 worth of bonds, money supply will decrease by $50 x (1 / 20%) = $50 x 5 = $250

total money supply = $2,000 - $250 = $1,750

6 0

3 years ago